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 competitor's net income.
D)to the total company's earnings per share.

Question

Quizplus · Accepted Answer

The income from operations for a profit center manager should be compared to historical performance or budget to assess how well the manager is controlling costs and generating revenue relative to expectations.

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