In evaluating the profit center manager,the income from operations should be compared
A)across profit centers.
B)to historical performance or budget.
C)to the competition's net income.
D)to the total company earnings per share.

Question

Quizplus · Accepted Answer

Income from operations should be compared to historical performance or budget because it allows the manager to assess the performance of the profit center over time and against established targets.

In Evaluating the Profit Center Manager,the Income from Operations Should