Which of the Following Statements Is a Reason for Using

question 58

Multiple Choice

Which of the following statements is a reason for using operating income or EBIT as a measure of performance in a profit center of a multinational corporation?

• A) It is much easier to calculate than other measures.
• B) It is the only measure available to the senior management of the parent company.
• C) It excludes interest and taxes, which are beyond the manager's control.
• D) Divisional managers will maximize output if this measure is used for management control.

---

Definitions:

Hive Setting

A social structure or environment where individuals work collectively in a highly cooperative and efficient manner, often compared to the functionality of a beehive.

Specialized

Having a particular area of expertise or focusing on a specific subject or skill within a broader field.

Collaboration

The act of working together with someone to produce or create something.

Group Ecology

Refers to the study of social groups and their environments, focusing on the relationships, dynamics, and patterns within and between groups.