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:

Reduce Uncertainties

Efforts or strategies aimed at minimizing unknowns or unpredictability in situations, often to improve decision-making or outcomes.

Qualities of Friendship

Characteristics or attributes that are generally perceived as conducive to forming and maintaining friendships, such as trust, loyalty, honesty, and mutual respect.

Define Friendship

The emotional and voluntary interpersonal relationship between two or more individuals, characterized by mutual affection, care, support, and the desire for each other's company.

Passion-based Intimacy

An emotional closeness that stems from shared enthusiasm or deep interest in particular activities or topics.