How Is Performance Evaluated for an Investment Center

question 35

Multiple Choice

How is performance evaluated for an investment 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:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Government Imposes

Refers to regulations, taxes, or policies that a government enforces or puts into effect in order to manage the country's affairs.

Floor

The minimum price or wage level that is legally or otherwise formally set, below which the actual price or wage cannot fall.

Equilibrium Price

The selling rate at which the number of products on offer is the same as the number of products wanted.