Explain the Differences Between Cost Centres, Profit Centres and Investment

question 25

Essay

Explain the differences between cost centres, profit centres and investment centres and the resulting differences as to how they should be assessed.

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Definitions:

Coke

A carbonaceous solid derived from coal through the process of carbonization, used primarily as a fuel and in the production of steel.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level in a given time period.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay at a given price.

Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded at those prices.