A profit center manager should be evaluated by
A)Examination of actual costs against budgeted costs.
B)A review of both revenues and expenses,with a focus on operating income.
C)How well assets have been used to generate income.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

A profit center manager should be evaluated by looking at both revenues and expenses, with a focus on operating income, as this gives a complete picture of how effectively the manager is running the profit center. Examining actual costs against budgeted costs and evaluating how well assets have been used are important considerations, but they should be part of a broader analysis that incorporates all aspects of the profit center's financial performance. Therefore, option B is the best choice.

A Profit Center Manager Should Be Evaluated by