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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Divisional Performance
Hello,
Can you please explain revenue, profit and investment center? Why are their different and how can they effect the performances?
The manager of a revenue centre is responsible for, and performance judged on revenue.
The manager of a profit centre is responsible for, and performance judged on profit ie revenue and costs
The manager of an investment centre is responsible for revenue, costs and the success of investment. Performance is judged using return on investment and residual income.
Thank you