How Is Performance Evaluated for a Profit Center

question 43

Multiple Choice

How is performance evaluated for a profit center?

• A) Actual costs incurred compared to budgeted costs.
• B) Actual segment margin compared to budgeted segment margin.
• C) Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.
• D)None of the above.

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Definitions:

Organic Product

An organic product is a chemical substance or material produced as a result of organic chemistry, primarily involving carbon-based compounds.

Synthetic Steps

The individual reactions that occur in sequence during the synthesis of a compound.

Methylpropane

An alternative name for isobutane, a branched-chain hydrocarbon with the formula C4H10, found in natural gas and used as a refrigerant and a propellant.

Hydride Shift

A rearrangement reaction where a hydrogen atom, together with its bonding electrons, moves from one carbon to another within a carbon skeleton.