Reference no: EM132548868

A large organisation with a well developed cost centre system, is considering the introduction of profit centres and (or) investment centres through the organisation, where appropriate. As management accountant, you will be providing technical advice and assistance for the proposed scheme.

You are required:

Question (a) To describe the main characteristics and objectives of the profit centres and investment centres;

Question (b) To explain what conditions are necessary for the successful introduction of such centres;

Question (c) To describe the main behavioural and control consequences that may arise if such centres are

Question (d) To compare two performance appraisal measures that might be used if investment centres are introduced.