When management is using performance reports to evaluate the performance of a business unit manager, which of the following costs should be considered?
A) Any costs that are attributable to the business unit
B) Common costs and any costs that are attributable to the business unit
C) Costs controllable by the business unit manager, common costs, and any costs that are attributable to the business unit
D) Only costs controllable by the business unit manager

Question

Quizplus · Accepted Answer

Only costs controllable by the business unit manager should be considered when evaluating their performance, as these are the costs over which the manager has direct influence and can be held accountable for.

When Management Is Using Performance Reports to Evaluate the Performance