The East Division, a profit center of Baden Engineering Company, reported the following data for the first quarter of 2010:
Instructions
(a) Prepare a performance report for the manager of the East Division.
(b) What is the best measure of the manager's performance? Why?
(c) How would the responsibility report differ if the division was an investment center?

Question

The East Division, a profit center of Baden Engineering Company, reported the following data for the first quarter of 2010:  
Instructions
(a) Prepare a performance report for the manager of the East Division.
(b) What is the best measure of the manager's performance? Why?
(c) How would the responsibility report differ if the division was an investment center?

Quizplus · Accepted Answer

The Answer of The East Division, a profit center of Baden Engineering Company, reported the following data for the first quarter of 2010:  
Instructions
(a) Prepare a performance report for the manager of the East Division.
(b) What is the best measure of the manager's performance? Why?
(c) How would the responsibility report differ if the division was an investment center?

The East Division, a Profit Center of Baden Engineering Company