Which of the Following Statements Best Represents the Controllability Principle

question 43

Multiple Choice

Which of the following statements best represents the controllability principle?

• A)A profit center manager should be evaluated based on residual income,not return on investment.
• B)An investment center manager should be evaluated based on return on investment,not residual income.
• C)A profit center manager should be evaluated based on segment margin,not profit margin.
• D)A cost center manager should be evaluated on costs and revenues,not just costs.

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Definitions:

Discover

To find, see, or become aware of something for the first time or after searching.

Cerebral Cortex

The cerebral cortex is the outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, awareness, thought, language, and consciousness.

Corpus Callosum

A wide strip of nerve tissue connecting the brain's two halves, enabling them to communicate with each other.

Hippocampus

A part of the brain's limbic system, crucial for memory formation and spatial navigation.