In Evaluating the Profit Center Manager, the Income from Operations

question 128

Multiple Choice

In evaluating the profit center manager, the income from operations should be compared

• A) across profit centers
• B) to historical performance or budget
• C) to the competitor's net income
• D) to the total company earnings per share

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Definitions:

Weber's Law

A principle in psychology that states the smallest change in a stimulus, such as weight or brightness, that can be detected is a constant proportion of the stimulus level.

Constant Proportion

A principle that, in a specific context, a relationship between certain quantities remains consistent, irrespective of changes in other variables.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, which varies across different sensory modalities.

Statistical Average

A value that signifies the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.