Under the Notion of Controllability, It Is Most Appropriate for Top

question 79

Multiple Choice

Under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of:

• A) Profits generated in relation to the amount of capital invested in the unit.
• B) Returns expressed as a percentage.
• C) Profits expressed in absolute terms.
• D) Operating profit generated.
• E) Returns expressed in actual dollar amounts.

---

Definitions:

Customer Benefit

The advantage or value that a buyer gains from purchasing and using a product or service, which meets their needs or desires.

All-benefits Approach

A marketing strategy that emphasizes all the benefits of a product or service to appeal to a wide range of consumers.

Points-of-difference

Unique attributes or features that set a product, service, or brand apart from its competitors in the eyes of the target market.

CVP

Stands for Cost-Volume-Profit analysis, a financial tool used to determine how changes in costs and volume affect a company's operating income and net income.