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:

Type I Error

The mistaken dismissal of a correct null hypothesis, often referred to as a "false positive."

Proportion

A part, share, or number considered in comparative relation to a whole, typically expressed as a fraction or percentage.

Hypothesis Test

A methodology in statistics that utilizes data from a subset to assess a conjecture about a population attribute.

Publishing Contract

An agreement between an author and publisher dictating the terms under which a work will be published, including rights, distribution, and royalties.