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The Manager of a Profit Center Is Evaluated on the Basis

question 35

Multiple Choice

The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division.The divisional manager is being evaluated using the ______________ budget approach.


Definitions:

Elasticity Measures

These are metrics used in economics to assess how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.

Elasticity

A measure in economics of how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Considered Elastic

A description for goods or services whose demand or supply is significantly responsive to changes in price.

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