The concept that says managers should be evaluated on the basis of revenues and/or expenses they can control is known as the:
A) Management by exception concept.
B) Controllability concept.
C) Responsibility concept.
D) None of these.

Question

Quizplus · Accepted Answer

The controllability concept implies that managers should be evaluated based on the revenues and expenses they can control. This means that they will be assessed only on the costs they can directly influence and not on the ones that are beyond their control. This principle helps in creating a fairer evaluation process for managers because it only factors in the costs that they can do something about. Therefore, option B is the correct answer.

The Concept That Says Managers Should Be Evaluated on the Basis