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I. The control system examines the role of assets in generating profit. II. In investment centers, outputs are measured in monetary terms and directly compared with input costs. III. It helps top management calculate the mere inflow and outflow of currency, rather than giving a total picture of profitability. (a) Only (I) above (b) Only (II) above (c) Both (I) and (III) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above.
Option a) is correct answer <<<<<<<<<<<<<<<<<<<
(a)
The following statements is true about investment centers: I. The control system examines the role of assets in generating profit.
is responsible for profit (revenues and costs) and for providing a return on the capital that has been invested into it by the larger organization to which it belongs. Because it is responsible for a return-on-investment, this type of department is the most like a regular and com-plete business by itself. However, it is still part of a larger organization. An example of an investment center is a branch office. Effectiveness in achieving and exceeding predetermined criteria is the key evaluation for an investment center manager
option a only ( I ) above is the correct answer
