A profit center manager's performance is typically measured based on the
A)Direct material and direct labor variances only.
B)Overall profit compared to the flexible budget.
C)ROI.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

A profit center manager's performance is typically measured based on the overall profit compared to the flexible budget as it takes into account all the revenue and expenses generated by the profit center. ROI is also another measure of performance but is often used for evaluating investments rather than managers' performance. Direct material and direct labor variances are typically used in measuring the performance of cost centers or production departments, not profit centers.

A Profit Center Manager's Performance Is Typically Measured Based on the