#1

Match the following terms with the best definition given below.

#2

In a profit center, the manager has responsibility and authority for making decisions that affect:

a. liabilities.

b. costs.

c. assets.

d. investments.

#3

In a cost center, the manager has responsibility and authority for making decisions that affect:

a. assets.

b. costs.

c. revenues.

d. both costs and revenues.

Income from operations minus minimum acceptable income from operations Controllable revenues Income from operations divided by invested assets Profit margin Ratio of income from operations to sales Investment turnover Rate of return on Earned by profit centers investments Ratio of sales to invested assets Residual income