P2 Responsibility Centres
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1
What is a cost centre
Where a manager is responsible for a particular aspect of operating costs
2
What is the objective of decentralisation
3
what is the disadvantage of decentralisation
4
How do you overcome the disadvantages of decentralisation
5
What is a revenue centre
where a manager/division is only responsible for the generation of revenue ie sales team
6
What is a profit centre
Where the manager is responsible for both revenue and profit
7
What is an investment centre
8
Explain ROCE
9
Explain operating profit
10
explain asset turnover
11
Explain the relationship between ROCE, Operating profit margin and Asset turnover
Op prof margin X Asset turnover = ROCE
12
give some examples of divisional performance measures
13
What is ROI
14
what are the advantages of ROI
15
what are the disadvantages of ROI
16
what is residual income
17
what are the advantages and disadvantages of residual income
18
What is EVA
19
what are the advantages of EVA