It is important to separate the evaluation of the manager from the evaluation of the division in a multinational firm. A manager's evaluation should NOT include
A)revenues.
B)income taxes.
C)operating costs.
D)cost of goods sold.

Question

Quizplus · Accepted Answer

Income taxes are usually a factor that is beyond the control of the manager and are determined by corporate or governmental policy. Therefore, evaluating the manager based on income taxes would not be a fair assessment of their performance. The other options listed (revenues, operating costs, and cost of goods sold) are more directly related to the manager's responsibilities and can be used to evaluate their performance.

It Is Important to Separate the Evaluation of the Manager