The best measure of the performance of the manager of a profit center is the
A) rate of return on investment.
B) success in meeting budgeted goals for controllable costs.
C) amount of controllable margin generated by the profit center.
D) amount of contribution margin generated by the profit center.

Question

Quizplus · Accepted Answer

The controllable margin is the best measure of a profit center manager's performance because it reflects the income that the manager can influence or control, excluding fixed costs that are not under their control.

The Best Measure of the Performance of the Manager of a Profit