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In an investment center, the manager has the responsibility and the authority to make decisions that affect not only costs and revenues, but also the plant assets invested in the center.
Carrying Value
The net amount at which an asset is valued on a company's balance sheet, considering its original cost minus any depreciation, amortization, or impairment costs.
Unit Product Cost
The cost associated with producing a single unit of product, including direct materials, direct labor, and allocated overhead expenses.
Net Operating Income
A company's operating profit after subtracting all operating expenses but before interest and taxes, reflecting the profitability of the core business activities.
Absorption Costing
A technique in accounting where all costs incurred from manufacturing, like direct materials, direct labor, and both kinds of manufacturing overhead (variable and fixed), are factored into the product's pricing.
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