In evaluating the profit center manager, the operating income should be compared
A)across profit centers
B)to a budget
C)to the competitor's net income
D)to the total company earnings per share

Question

Quizplus · Accepted Answer

Comparing the operating income to a budget allows for an assessment of how well the profit center manager is controlling costs and generating revenue against planned targets. This comparison is directly related to the manager's performance and decision-making.

In Evaluating the Profit Center Manager, the Operating Income Should