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Managerial Accounting
Introduction to Managerial Accounting
Jeannie M. Folk
Ray H. Garrison
Eric Noreen
Decentralization

Learning Objectives

After studying Chapter 10, you should be able to:

1

Understand the role of cost, profit, and investment centers in a decentralized organization.

2

Compute the return on investment (ROI).

3

Show how changes in sales, expenses, and assets affect an organization's ROI.

4

Compute residual income and understand the strengths and weaknesses of this method of measuring performance.




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