Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 11 - Performance Measurement in Decentralized Organizations - Questions - Page 497: 11-3

Answer

The differences are...

Work Step by Step

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets is a profit center while a control center has no control over costs and revenue. An investment center has control over costs, revenue, and investments, in operative asset classes.
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