The Performance Evaluation of a Profit Center Is Typically Based

question 111

Multiple Choice

The performance evaluation of a profit center is typically based on its

• A)flexible budget variance.
• B)static budget variance.
• C)return on investment.
• D)return on assets.

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Definitions:

Rivalry Among Firms

Describes competition between businesses in the same industry aimed at gaining increased market share, revenues, and customer loyalty.

Customers Locked

A situation where customers are bound to a service or product, often through contracts, making it difficult for them to switch to competitors.

Switch Technologies

Changing or transitioning from one technology to another, often to improve efficiency, performance, or to embrace newer standards.

Platform Strategy

A business approach that focuses on creating a foundational service or technology that supports various products, services, or participants.