Departmental managers at Boswell Department Store are allowed considerable discretion in both sourcing and pricing of products, based on local tastes and competition, as well as being responsible for departmental staffing. Based on the concept of the responsibility center, which of the following would not be a performance measure that would be useful in evaluating the performance of departmental managers at the stores?
A) Departmental profit compared to budgeted departmental profit.
B) Trends in general and administrative expenses for each store.
C) Growth in departmental sales compared to the prior period sales
D) Departmental customer satisfaction.

Question

Quizplus · Accepted Answer

General and administrative expenses are typically not under the direct control of departmental managers, so they would not be a useful measure for evaluating their performance.

Departmental Managers at Boswell Department Store Are Allowed Considerable Discretion