Managers of profit centers are usually given a lot of discretion because
A)They always do an excellent job
B)They rarely do a good job
C)The company can never judge their performance
D)It is relatively easy to tie management pay to division performance

Question

​Managers of profit centers are usually given a lot of discretion because
A)​They always do an excellent job
B)They rarely do a good job
C)The company can never judge their performance
D)​It is relatively easy to tie management pay to division performance

Quizplus · Accepted Answer

Profit center managers are given a lot of discretion because it is relatively easy to tie their pay to the performance of the division. This encourages them to maximize profits and make decisions that are beneficial for the company as a whole. However, they still need to be monitored and evaluated to ensure they are making decisions that align with the company's goals.

​Managers of Profit Centers Are Usually Given a Lot of Discretion

Managers of Profit Centers Are Usually Given a Lot of Discretion