Which one of the following measures is frequently used to evaluate the performance of the manager of an investment centre, but NOT profit centres?
A)the amount of profit generated
B)the percentage increase in profit over the previous year
C)controllable margin
D)the rate of return on funds invested in the centre

Question

Quizplus · Accepted Answer

The rate of return on funds invested in the centre is frequently used to evaluate the performance of the manager of an investment centre. This measure is not used for profit centres, where the main focus is on maximizing profits. Controllable margin, amount of profit generated, and percentage increase in profit over the previous year are all commonly used measures for evaluating the performance of profit centres.

Which One of the Following Measures Is Frequently Used to Evaluate