Is it practically possible in real life to have in one company the three types of centers (i.e Cost center, profit center and Investment center) at the same time? And if that can happen how do you think they will work to gather, as the cost center has the autonomy on costing decisions while at the same time the other two centers have the same autonomy on costing decisions? Hope you are getting my point.
I’m revising divisional performance measurement now for P5 and John Moffat is still the most gifted teacher I have come across in studying for 13 ACCA exams with 5 different tuition providers. Crystal clear & engaging.
barre44 says
Sir,
Is it practically possible in real life to have in one company the three types of centers (i.e Cost center, profit center and Investment center) at the same time? And if that can happen how do you think they will work to gather, as the cost center has the autonomy on costing decisions while at the same time the other two centers have the same autonomy on costing decisions?
Hope you are getting my point.
Thank you for your good lecturing.
John Moffat says
It is possible, but it is up to top management to decide how performance of each centre is to be measured (and as to how they will work together).
andrewmc says
I’m revising divisional performance measurement now for P5 and John Moffat is still the most gifted teacher I have come across in studying for 13 ACCA exams with 5 different tuition providers. Crystal clear & engaging.
Thank you for all that you do sir.
John Moffat says
And thank you very much indeed for your comment 馃檪
Ainul Asyikin says
very helpful
John Moffat says
Thank you 馃檪