When a division manager is evaluated based on the difference between the revenues and cost figures of his or her division,this is an example of:
A)a cash flow budget approach
B)a capital budget approach
C)a revenue budget approach
D)an expense budget approach
E)a profit budget approach

Question

Quizplus · Accepted Answer

This is an example of a profit budget approach, as it evaluates the manager based on the profit, which is the difference between revenues and costs.

When a Division Manager Is Evaluated Based on the Difference