Advanced From an accounting perspective an organizational unit of an accounting entity may be a cost centre or a profit centre or an investment centre. Explain Economic value added is a recent development and is likely to feature more prominently (instead of residual income) in future examinations.

these categories, describe the strengths and weak¬ nesses of each and conditions in which each would be most appropriate if the aim is to develop efficient planning and control procedures.

(7 marks)

ACCA Level 2 Management Accounting