These are profit responsibility centers. In profit centers, the manager is responsible for revenues and costs. Profit centers should have adequate autonomy to select customers and set prices for products or services sold. The same autonomy should apply to the formation of cost levels. An example of a manager – in capital groups, the director of a manufacturing plant.
Proportional variable costs – what are they? Definition of the concept
In the economy, variable proportional costs (VPC) are costs whose amount is proportional to the volume of production.…