A Divisional Manager Is Evaluated Based on the Operating Income

question 72

Multiple Choice

A divisional manager is evaluated based on the operating income of his division.On the basis of which of the following budget approaches is the divisional manager being remunerated?

• A) Cash flow budget approach
• B) Capital budget approach
• C) Revenue budget approach
• D) Expense budget approach
• E) Profit budget approach

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Definitions:

Mental Links

The connections between concepts, ideas, or pieces of information stored in memory.

Concepts

General ideas or understandings that individuals have about something, which are used to categorize and interpret information.

Schema's Tendency

The propensity of cognitive schemas, which are frameworks for understanding the world, to influence perception and memory in a consistent direction.

Salience

The quality of being particularly noticeable or important; something that stands out in a person's perception or attention.