Halpern Corporation is in the process of overhauling the performance evaluation system for its San Diego manufacturing division, which produces and sells parts that are popular in the aerospace industry. Which of the following is least likely to be chosen to evaluate the overall operations of the San Diego division?
A) Cost center.
B) Responsibility center.
C) Profit center.
D) Investment center.
E) The profit center and investment center are equally unlikely to be chosen.

Question

Quizplus · Accepted Answer

A cost center is least likely to be chosen for evaluating the overall operations of a division that produces and sells products, as it focuses primarily on controlling costs and does not account for revenue generation, which is a key aspect of a manufacturing division's performance.

Halpern Corporation Is in the Process of Overhauling the Performance