In evaluating the performance of a profit center manager,he/she should be evaluated on
A)all revenues and costs that can be traced directly to the unit.
B)all revenues and costs under his/her control.
C)the variable costs and the revenues of the unit.
D)the same costs and revenues on which the unit is evaluateD.

Question

Quizplus · Accepted Answer

The profit center manager should be evaluated on all revenues and costs under his/her control. This includes both direct and indirect costs as well as all revenues generated by the unit. This approach provides a comprehensive view of the unit's performance and allows for better decision making on how to improve the profitability of the unit. Options A, C, and D are either too narrow or too broad to provide an accurate assessment of the manager's performance.

In Evaluating the Performance of a Profit Center Manager,he/she Should