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Figure 9.4 in the text showed the development of a multi-item scale.Discuss the development process.
Investment Centers
Business units or departments that are directly responsible for generating returns on assets allocated to them.
Controllable Margin
The portion of profit or margin that can be directly influenced by managing costs or expenses within a department or area.
Average Operating Assets
The average value of the assets used in the operation of a business, taken over a specific period, which may be used to evaluate the effectiveness of asset use in generating revenue.
Return on Investment
A measure of the profitability of an investment, calculated by dividing the net profit by the initial cost of the investment.
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