Because Profit Centers Are Only Responsible for Controlling Costs,their Performance

question 159

True/False

Because profit centers are only responsible for controlling costs,their performance reports include only information on actual costs versus budgeted costs.

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Definitions:

WACC

The Weighted Average Cost of Capital is a method of determining a corporation's cost of capital, with each capital category being weighted in accordance with its relative proportion.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.

Cash Flow

A measure of the amount of cash and cash-equivalents being transferred into and out of a business.

Project

An individual or collaborative enterprise planned and designed to achieve a specific goal.