Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A sales business unit has control over sales volume, sales mix and sales prices and their administrative and advertising costs. It buys products from its
A sales business unit has control over sales volume, sales mix and sales prices and their administrative and advertising costs. It buys products from its parent company and has no discretion over purchasing prices. What kind of responsibility centre would you recommend the sales unit is to measure its manager's performance?
(a) Either standard cost centre or profit centre
(b) Revenue centre
(c) Investment centre
(d) Profit centre
(e) Standard cost centre
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started