When a Divisional Manager Is Evaluated Based on the Operating

question 98

Multiple Choice

When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach.

• A)capital
• B)revenue
• C)expense
• D)profit

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Definitions:

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.

Economic Behavior

The study of human actions in purchasing, selling, and managing resources, especially in response to economic stimuli or policies.

Prescribed Courses

Courses that are required to be taken to complete a degree or certification program.

Econometrics

The application of statistical and mathematical models to analyze economic data and test hypotheses.