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hcraik2 hcraik2
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A year ago
In a decentralized organization, upper managers need a way to evaluate the performance of unit managers. Based on factors under the unit manager's control, organizational units are categorized as cost centers, profit centers, or investment centers. Classify each of the following centers by placing an "X" in the appropriate column.

CostProfitInvestment
Residual income is used to evaluate unit managers
Purchasing department
Shoe department in local department store
Independently-operated division with sole decision-making authority for all areas
Manager is expected to generate a profit for unit
ROI is used to evaluate unit manager
Manager cannot set selling price for products
Manager is expected to invest in assets that generate profits
Overall profit compared to flexible budget is used to evaluate unit manager
Free gift-wrapping department in local department store
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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apinaapina
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A year ago
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hcraik2 Author
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A year ago
This helped my grade so much Perfect
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Yesterday
Brilliant
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2 hours ago
Smart ... Thanks!
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