To monitor,and make accountable, the management team for that Cost/Profit/Investment center.
The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
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.
because the lower the cost the more profit the business makes profit = revenue - cost
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.
Give me an example of a cost center, a profit center, and an investment center for FedEx?
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
cost center investment center profit center revenue center
center
Japtj
return is calculate against investment. profit is calculte against cost.
To calculate a simple Return on Investment (ROI), use the formula: ROI = (Net Profit / Cost of Investment) x 100. First, determine your net profit by subtracting the total costs of the investment from the total revenue generated. Then, divide the net profit by the cost of the investment and multiply by 100 to express it as a percentage. This calculation helps assess the profitability of an investment.
cost centre = the department which activities cash disbursement profit centre = the department which activities making cash
Return on Investment (ROI) is calculated by taking the net profit from an investment, subtracting the initial cost of the investment, and then dividing that number by the initial cost. The formula is: ROI = (Net Profit / Cost of Investment) x 100. This calculation provides a percentage that represents the efficiency or profitability of the investment. A positive ROI indicates a gain, while a negative ROI indicates a loss.
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.
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.
it manages our financial cost and investment and also gives us profit ratio.