When a division manager is evaluated based on the difference between the revenues and cost figures of his or her division, this is an example of:
A)a cash flow budget approach
B)a capital budget approach
C)a profit budget approach
D)a revenue budget approach
E)an expense budget approach

Question

Quizplus · Accepted Answer

The evaluation based on the difference between revenues and cost figures is a measure of the division's profitability, which falls under the profit budget approach.

When a Division Manager Is Evaluated Based on the Difference