Profit center managers are most often evaluated on the basis of:

Question

Quizplus · Accepted Answer

Profit center managers are responsible for a particular segment of the business and are evaluated based on the profitability of that segment. Segment margin, which is the revenue generated by the segment minus the direct expenses incurred by the segment, is an appropriate measure of profitability for a profit center. Choice A is more applicable to a cost center, choice C is more applicable to an investment center, and choice D is a measure of overall company profitability and is not specific to a profit center.

Profit Center Managers Are Most Often Evaluated on the Basis