The Profitability of an Investment Centre Can Best Be Evaluated

question 41

Multiple Choice

The profitability of an investment centre can best be evaluated by:

• A) the revenues, costs and investment the manager can control.
• B) the total capital invested in the organisation and the sizeable amount of return.
• C) the profit margin and the investment capital traceable to the investment centre.
• D) the divisional contribution margin.

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Definitions:

Curiosity

A strong desire to know or learn something, driving exploration and investigation.

Independent Variable

In experimental research, the variable that is manipulated by the researcher to examine its effect on the dependent variable.

Experimental Study

A research method where the researcher manipulates one variable to determine if it causes a change in another variable, within a controlled environment.

Dependent Variable

The variable in an experiment that is expected to change as a result of changes made to the independent variable.