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Accounting-basedperformance evaluation is used regularly to assess the organization's financialhealth and to inform both internal and external stakeholders. Examining costcenters, profit centers, and investment centers is often part of this kind ofevaluation. Whether your previous professional experiences have included theperformance evaluation of cost, profit, or investment centers or not, youlikely will be asked to analyze this kind of information in the future. Toprepare for this Individual Reflection, consider the organization in which youcurrently work, or have most recently worked, and respond to the following withthat organization in mind.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
The Assignment:
o Begin by analyzing the differences among cost centers, profitcenters, and investment centers.
o Then, provide an example of each type based on your professionalexperience.
o Finally, explain how you might change the way you evaluate theperformance of each type of center in the future. Be specific in explaining theperformance evaluation method you will use for each type of center.
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