The Jameson C ompany has recently formed a subsidiary, Bright Ideas, to manufacture and sell household appliances.

Question:

a. What is the difference between an investment center and a profit center?

b. What factors should Jameson consider in deciding whether to evaluate Bright Ideas as a profit or investment center?

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Managerial Economics and Organizational Architecture

ISBN: 978-0073375823

5th edition

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

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Question Posted: Apr 30, 2018 07:50 AM

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The Jameson C ompany has recently formed a subsidiary, Bright Ideas, to manufacture and sell household appliances.

Question:

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a Profit center managers have decision rights on input mix product ...View the full answer

Managerial Economics and Organizational Architecture

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