An investment center manager's performance is more thoroughly based on

Question

Quizplus · Accepted Answer

An investment center manager's performance is primarily evaluated based on the return on invested assets, which measures the profitability of the investment center's assets. While a comparison with the flexible budget and profitability are important considerations, they are not the primary basis for evaluating an investment center manager's performance. Additionally, using the same methods as managers of cost centers may not provide an accurate picture of an investment center manager's performance since their focus is on generating income rather than controlling costs.

An Investment Center Manager's Performance Is More Thoroughly Based on