In assessing the performance of a manager of a profit centre, which of the following would be an appropriate measure?
A) Net profit margin
B) Income from operations
C) The centre's budget with actual performance
D) All of the above

Question

Quizplus · Accepted Answer

All of the options listed are appropriate measures for assessing the performance of a manager of a profit center. Net profit margin gives insight into how efficiently the profit center is being managed relative to its revenue. Income from operations focuses on the core business activities, excluding non-operating income and expenses. Comparing the center's budget with actual performance helps in understanding how well the manager is adhering to financial plans and controlling costs.

In Assessing the Performance of a Manager of a Profit