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Explain why the expenditure multiplier is greater than 1.
Profit Center
A responsibility center that incurs costs and also generates revenues.
Average Operating Assets
The average value of the assets used in the normal operations of a business over a certain period, often used in evaluating the performance of investment centers.
Controllable Margin
A financial metric used to assess the amount of profit that can be controlled or influenced by managerial decisions.
Cost Center
A responsibility center that incurs costs but does not directly generate revenues.
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