Return on total assets for a cost center is a useful measure to evaluate the cost center manager.

Question

Quizplus · Accepted Answer

Return on total assets is a measure used to evaluate the overall profitability of the company and is not specific to a cost center. It would not be an appropriate measure to evaluate the performance of a cost center manager, who may not have control over the company's total assets. Instead, cost center managers may be evaluated based on measures such as cost savings or efficiency improvements within their specific areas of responsibility.

Return on Total Assets for a Cost Center Is a Useful