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Profit centres are measures of divisional performance. The performance measure is of course profit. The manager has the knowledge to set the correct prices and quantities as well as product mix.
Investment centres are similar to profit centres but they have additional decision rights in terms of capital expenditure and investment. The manager is assumed to have better knowledge of input and output markets but also investment opportunities.
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∙ 15y ago
Profit centers are departments or units within a business that generate revenue and directly contribute to the overall profitability of the organization. They are responsible for both generating revenue and controlling costs.
On the other hand, investment centers are divisions or units within a business that have the authority to make investment decisions. They are responsible for allocating and managing financial resources and evaluating the return on investment for various projects and initiatives.
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When was Profit Investment Management created?
Profit Investment Management was created in 1996.
What are profit centers accountable for?
Profit centres are accountable for revenues, costs, and, consequently, profits.
What is Islamic point of view about investment in national savings?
All the investment where profit rate is fixed and for profit word used intrest or Rabia its not halal. If Rabia free investment and profit also then its Halal.
How is the concept of a normal return on investment related to the distinction between business and economic profit?
Economic profit is the profit made on an investment of some sort in which inflation and other economic factors have been considered. Normal return on investment is just the net profit made in the investment (simple subtraction).
Formula for average rate of return?
Average rate of return=Average profit /Initial investment*100% or ARR=Average profit /Average investment*100% or ARR=Total profit /Initial Investment*100%
Is a measure of income or profit divided by the investment required to obtain that income or profit?
Profit
of these is not considered a capital investment?
Profit
Who of these is not considered a capital investment?
Profit
Why Cost center profit center investment center has its own budget?
To monitor,and make accountable, the management team for that Cost/Profit/Investment center.
Identify one example of a cost center a profit center and an investment center for fedex?
Give me an example of a cost center, a profit center, and an investment center for FedEx?
Return On Investment in fmcg?
Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)
How is profit productivity measured?
Productivity is closely related to, but not dependent on, profit. It can be measured by return on investment (ROI).
