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

Evaluating a profit center manager on all revenues and costs under his or her control would give the most accurate assessment of their performance as it takes into account their ability to manage and make decisions regarding resources within the unit. A) and C) are too narrow in focus, while D) is not specific enough.

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