An investment center manager's performance can be based on
A)the same methods as managers of cost centers.
B)the same methods as managers of profit centers.
C)residual income.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

An investment center manager's performance can be evaluated using various methods, including those used for cost centers (focusing on cost control), profit centers (focusing on profitability), and also through residual income, which measures the net operating income that an investment center earns above the minimum required return on its operating assets.

An Investment Center Manager's Performance Can Be Based on