- 3 Marks
MA – Dec 2023 – L2 – Q1c – Divisional performance
This question asks for a comparison between profit centers and investment centers in management accounting.
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Explain in brief the following terminologies as used in performance evaluation, highlighting their managerial objectives and the performance measurement indexes:
i) Cost centre
ii) Revenue/profit centre
iii) Investment centre
(6 marks)
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a) Inventory refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in the near future. Inventory could be in the form of raw materials, finished goods, work in progress, among others.
Required:
Identify FIVE (5) reasons actual inventory counted may be different from the balance in the inventory records. (5 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Explain in brief the following terminologies as used in performance evaluation, highlighting their managerial objectives and the performance measurement indexes:
i) Cost centre
ii) Revenue/profit centre
iii) Investment centre
(6 marks)
Find Related Questions by Tags, levels, etc.
a) Inventory refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in the near future. Inventory could be in the form of raw materials, finished goods, work in progress, among others.
Required:
Identify FIVE (5) reasons actual inventory counted may be different from the balance in the inventory records. (5 marks)
Find Related Questions by Tags, levels, etc.
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