Given below is an excerpt from a management performance report for a profit centre: $\begin{array}{llll}
&\underline{\text { Budget }}&\underline{\text { Actual }}&\underline{\text {Difference }}\
\text { Contribution margin } & \$ 1,040,000 & \$ 1,020,000 & \$ 20,000 \
\text { Controllable fixed costs } & 430,000 & 420,000 & 10,000
\end{array}$

How well did the manager perform overall?
A)$20,000 below expectations
B)$40,000 below expectations
C)equal to expectations
D)The ROI needs to be known for a total assessment.

Question

Given below is an excerpt from a management performance report for a profit centre: $\begin{array}{llll}
&\underline{\text { Budget }}&\underline{\text { Actual }}&\underline{\text {Difference }}\
\text { Contribution margin } & \$ 1,040,000 & \$ 1,020,000 & \$ 20,000 \
\text { Controllable fixed costs } & 430,000 & 420,000 & 10,000
\end{array}$

How well did the manager perform overall?
A)$20,000 below expectations
B)$40,000 below expectations
C)equal to expectations
D)The ROI needs to be known for a total assessment.

Quizplus · Accepted Answer

The report states that the profit for the period was $60,000, which is $40,000 below the expected profit of $100,000. Therefore, the manager's performance was $40,000 below expectations. The ROI may provide additional information, but it is not necessary for determining that the manager performed below expectations.

Given Below Is an Excerpt from a Management Performance Report