The Manager of a Profit Center Is Evaluated on the Basis

question 15

Multiple Choice

The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ________ budget approach.

• A)expense
• B)cash flow
• C)revenue
• D)profit

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Definitions:

Chi-Squared Variable

A variable that follows the chi-squared distribution, typically used in tests of independence and goodness-of-fit.

Degrees of Freedom

The sum of independent quantities or values able to be set for a statistical distribution.

Population Variances

A measure of the variance within an entire population, indicating the average of the squared differences from the mean.

Test Statistic

A standardized value calculated from sample data during a hypothesis test; used to decide whether to reject the null hypothesis.