Accounting

Segment Margin differs from Contribution Margin Contribution margin is the amount remaining from sales revenue once all variable costs have been removed. Contribution margin ratio…

Responsibility accounting involves a company’s internal accounting and budgeting. The objective is to assist in the planning and control of a company’s responsibility centers –…

Decentralization refers to a company’s top management delegating authority to subunits of the company. A decentralized system is one which requires multiple parties to make…

A rate of return is the measure of profit as a percentage of investment. The rate returns is another capital budgeting technique that does not…

Decentralization Transfer of decision-making power and assignment of accountability and responsibility for results. It is a form in which managers at the lower levels have…

Segment margin: The difference between the revenue of a segment and the direct costs of the segment represents the amount of income that has been…

It is important to monitor the performance of cost, profit and investment centre to judge how both the centre are performing economically and how their…

It is important to monitor the performance of cost, profit and investment centre to judge how both the centre are performing economically and how their…

It is important to monitor the performance of cost, profit and investment centre to judge how both the centre are performing economically and how their…

Measurement performance of cost center, profit center, and investment center A cost center is a subunit of a company that is responsible only for as…