In Evaluating the Performance of a Profit Center Manager,the Manager

question 67

Multiple Choice

In evaluating the performance of a profit center manager,the manager

• A)and the sub-unit should be evaluated on the basis of the same costs and revenues.
• B)should only be evaluated on the basis of variable costs and revenues of the sub-unit.
• C)should be evaluated on all costs and revenues that are controllable by the manager
• D)should be evaluated on all costs and revenues that can be directly traced to the sub-unit.

Understand the concept of fiscal year and its implications for financial reporting.

Grasp the role of adjusting entries in accurately reflecting a company's financial position and performance.

Comprehend the purpose and effects of specific adjusting entries, such as those for unearned revenues, accrued expenses, and depreciation.

Recognize the necessity of period-end adjustments to comply with the revenue recognition and expense recognition principles.

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Definitions:

Learning Organisation

An organization that actively fosters a culture of continuous learning, enabling it to adapt and evolve in fast-changing environments.

Peter Senge

A systems scientist and senior lecturer at MIT, known for his work on learning organizations and the author of "The Fifth Discipline."

Self-Interest

An individual's actions and decisions guided by personal gain or benefit, often considered a motivating factor in economic theory.

Learning Organisation

A type of organization that actively seeks to acquire knowledge and adapt to change effectively through continuous improvement and employee engagement.