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Why Cost center profit center investment center has its own budget?
Wiki User
∙ 14y ago
To monitor,and make accountable, the management team for that Cost/Profit/Investment center.
Wiki User
∙ 14y ago
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How do you Calculate a Return on an Investment?
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
Why do investment bankers buy the stocks?
to sell at a higher profit to their clients....? They can be buying to collect on dividends, lower cost basis of stock they already own, diversify their portfolios, speculation and of coarse profit in the resale.
What is the budget and cost and concept of an indigenuos trader and a sole trader?
The budget and cost and concept for the indigenous trader and sole can vary depending on the company's budget. If there is not a deficit in the account then the budget cost can increase.
Why is cost important in business?
because the lower the cost the more profit the business makes profit = revenue - cost
What is meant by capital rationing?
Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it.
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?
What is the difference between a cost center a profit center and an investment center?
Cost centers - http://en.wikipedia.org/wiki/Cost_center Profit center - http://en.wikipedia.org/wiki/Profit_center Investment center - http://en.wikipedia.org/wiki/Investment_center
What are examples for responsibility centers?
cost center investment center profit center revenue center
What are three example of the kinds of decisions where incremental analysis would be used in cost center profit center and investment center?
center
What is the difference between returns and profit?
return is calculate against investment. profit is calculte against cost.
What is the difference between budget center and cost center?
Japtj
What is the difference between a cost center and profit center?
cost centre = the department which activities cash disbursement profit centre = the department which activities making cash
What is difference between cost center and profit center?
Cost Centre: It is that department in factory where all costs are pooled or costs are allocated. Profit Centre: Is is that department where only profit is pooled like sales department.
Who does marketing in company?
it manages our financial cost and investment and also gives us profit ratio.
In detail explain the cost center?
A cost center is part of an organization that does not produce direct profit and adds to the cost of running a company. It is an organizational department.
Define the term investment center and cost center?
The term investment center is used for business units that is within an enterprise. It must be treated as a unit that is measured against capital. Cost center is a department unit that is within an organization in which costs may be charged for accounting purposes.
What are the objective of operating cost?
To seperate the cost of production from profit to allow analysis like ROI (Return on Investment), cost vs benefit, and cost reducing production improvements.
