The Best Measure of the Performance of the Manager of a Profit

question 11

Multiple Choice

The best measure of the performance of the manager of a profit center is the

• A) rate of return on investment.
• B) success in meeting budgeted goals for controllable costs.
• C) amount of controllable margin generated by the profit center.
• D) amount of contribution margin generated by the profit center.

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Definitions:

Public Policy

Principles and standards regarded by the legislature or courts as being of fundamental concern to the state and the whole of society.

Illegal

That which is forbidden by law; activities or actions that are against statutory laws and regulations.

Unenforceable

A contract or clause that cannot be executed by the judicial system because it violates laws or regulations or because it lacks certain essential elements.

Mentally Incompetent Persons

Individuals who are legally recognized as incapable of managing their own affairs or making decisions due to mental incapacity.