Difference between profit center and investment center


Response to the following questions:]

1. Differentiate between a cost center and a profit center.

2. Differentiate between a profit center and an investment center.

3. In what major respect would budget performance reports prepared for the use of plant managers of a manufacturing business with cost centers differ from those prepared for the use of the various department supervisors who report to the plant managers?

 

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Cost Accounting: Difference between profit center and investment center
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