Firms often use profit before taxes to evaluate profits centers, computed as contribution margin less traceable fixed costs.
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Q5: Organizations typically use budget variances to measure
Q6: The controllability principle is always the right
Q7: Suma is a philosophy of continuous improvement
Q8: Most controllable measures are informative; however an
Q9: Organizations use monitoring, performance evaluation, and incentive
Q11: The major criticism against ROI is that
Q12: Decentralization worsens the problem of divergence between
Q13: Managers of investment centers enjoy little autonomy
Q14: Net book value is the original acquisition
Q15: Cost center managers are charged with minimizing
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