Asked by
Lizzy Smith
on Nov 12, 2024Verified
The major shortcoming of income from operations as an investment center performance measure is that it ignores the amount of revenues earned by the center.
Income From Operations
The earnings generated from a company's primary business activities, excluding non-operating income and expenses.
Investment Center
A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is analyzed for profitability.
- Understand the various performance measures for investment centers, including income from operations, ROI, and residual income.
Verified Answer
AG
Learning Objectives
- Understand the various performance measures for investment centers, including income from operations, ROI, and residual income.
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