When evaluating the performance of divisions:
A) only controllable costs should be identified.
B) both controllable and non-controllable revenues and costs should be identified.
C) only uncontrollable revenues should be identified.
D) none of the options are correct.

Question

Quizplus · Accepted Answer

Evaluating the performance of divisions should include both controllable and non-controllable revenues and costs. Identifying only controllable costs would provide an incomplete picture of the division's performance, while identifying only uncontrollable revenues would not accurately reflect the division's ability to generate income. It is important to consider all sources of revenue and costs to get a comprehensive understanding of the division's performance.

When Evaluating the Performance of Divisions