A Manager of a Cost Center Is Evaluated Mainly on

question 49

Multiple Choice

A manager of a cost center is evaluated mainly on

• A) the profit that the center generates.
• B) his or her ability to control costs.
• C) the amount of investment it takes to support the cost center.
• D) the amount of revenue that can be generated.

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Definitions:

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, as in currency or interest rate swaps.

Spot Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Premium

The amount paid for an insurance policy or the price above the nominal or face value of a security or investment.

Swiss Francs

Swiss Francs are the currency of Switzerland, known for their stability and being a safe-haven currency in times of financial market volatility.