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:

Motorcycle Manufacturer

A company that designs, produces, and sells motorcycles.

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, and is located in a country different from where the parent company is situated.

Sweatshops

Work environments that have poor working conditions, violations of labor laws, and unethical treatment of workers, often with extremely low pay.

Poor Working Conditions

An environment where the safety, health, and well-being of employees are not adequately protected.