alleryStart learning →A profit centre manager chooses inputs and outputs but not what?
AThe selling price
BThe investment level
CThe product mix
DThe raw supplier
Answer & Solution
Correct answer: B. The investment level
A profit centre works with a fixed level of investment, unlike an investment centre.
Keep practising Divisional Transfer Pricing
Browse all Divisional Transfer Pricing questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
Group units in tax rates of 25% and 40%. Shifting Rs 10 lakh profit to the lower-tax unit Why can ROI figures be manipulated?A known weakness of ROI as a measure is that it is not what?A division earns Rs 36 lakh profit on Rs 240 lakh invested. Its ROI is what?The cost of capital is best described as what?RONA is 16%, required return 12% and net investment Rs 800 lakh. EVA?NOPAT of Rs 72 lakh on capital of Rs 400 lakh gives RONA of what?When is value created, according to the EVA idea?