Managerial Accounting

What is the connection between the extent of decentralization and the investment center concept?

Give some of the advantages of decentralization.

Differentiate between a direct cost and an indirect cost of a segment. What happens to these categories if the segments to which they are related are eliminated?


do some research to learn about organizations using responsibility centers as part of an organizational structure. Information can be found in the news, research papers, and on investment sites. Another option is to locate the financial statements for a company, make some assumptions, and prepare your own assessment of the organizational structure. Describe the situation and the results. Show computations when appropriate