Survey of Accounting (Accounting I)
Solutions
Survey of Accounting (Accounting I)
Why should the factors under the control of the investment center manager (revenues, expenses, and invested assets) be considered in computing the return on investment?
Concept Introduction:
Cost center:
Cost center incurs costs and does not generate the revenue directlyInvestment Center:
Investment center takes care of revenue, cost and investment
Profit Center:
Profit center generate revenue and incur expenses
To Indicate:
The reason to consider all factors of investment centers
Investment center takes care of revenue, cost and investment.
All the factors of investments centers (revenue, expenses and invested assets) should b...
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