Net cash flow could be used to measure performance in
A)cost centers and investment centers.
B)revenue centers and profit centers.
C)revenue centers and investment centers.
D)profit and investment centers.

Question

Quizplus · Accepted Answer

Net cash flow is a measure of how much cash is generated or used up by a business over a period of time. Profit centers and investment centers are two types of business units that can utilize net cash flow to measure their performance. Profit centers focus on generating profits, while investment centers are responsible for making investments and managing assets. Both types of centers can benefit from tracking their net cash flow to assess their overall financial performance. Revenue centers, on the other hand, are typically not evaluated based on net cash flow, as their primary goal is to generate revenue rather than manage expenses or investments.

Net Cash Flow Could Be Used to Measure Performance in