Which of the following would be the best measure on which to base a segment manager's performance evaluation for purposes of granting a bonus?
A) Segment sales revenue.
B) Segment contribution margin.
C) Profit margin controllable by the segment manager.
D) Segment profit margin.
E) Segment net income.

Question

Quizplus · Accepted Answer

Profit margin controllable by the segment manager is the best measure for evaluating a segment manager's performance for bonus purposes because it focuses on the financial outcomes directly influenced by the manager's decisions and actions, excluding factors outside their control.

Which of the Following Would Be the Best Measure on Which