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Describe a Directed Reading Activity and at Least One Alternative

question 12

Essay

Describe a directed reading activity and at least one alternative to this approach.


Definitions:

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.

Investment Center

A business segment whose manager has control over cost, revenue, and investments in operating assets.

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.

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