How Is Performance Evaluated for a Profit Center

question 22

Multiple Choice

How is performance evaluated for a profit center?

• A) Actual costs incurred compared to budgeted costs.
• B) Actual segment margin compared to budgeted segment margin.
• C) Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.
• D) None of these.

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Definitions:

Indirect Approach

A communication strategy where the main point or conclusion is presented after the supporting details or arguments, often used to soften negative news or persuade.

Main Idea

The central point or the most important message that an author wants to convey in a piece of writing.

Visual Medium

A form of communication that conveys information through visual representations, such as photographs, diagrams, or videos.

Digital Channel

A means of communication or distribution over digital platforms, such as social media, websites, or email.