Many Companies View Performance Margin as a More Useful Tool

question 88

Multiple Choice

Many companies view performance margin as a more useful tool than responsibility margin for evaluating segment managers.This is because:

• A)Managers have no control over traceable fixed costs.
• B)Performance margin is not affected by the size of the department.
• C)Performance margin indicates the change in operating income that would result from closing the department.
• D)Performance margin includes only those revenue and costs under the manager's direct control.

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Definitions:

Cultural Feminism

A branch of feminism focusing on the difference between women and men and valuing women's unique contributions and experiences in society.

Cognitive Ability

Refers to the mental capacity for processing information, applying knowledge, and solving problems.

Similar

Having a resemblance in appearance, character, or quantity, without being identical.

Dissimilar

Lacking similarity or being distinctly different in nature, form, or quality.