Under the notion of controllability,it is appropriate for top management to evaluate the profitability of investment center in terms of:

Question

Quizplus · Accepted Answer

Evaluating profitability in relation to the amount of capital invested is appropriate under the notion of controllability because it reflects the center's ability to generate returns on the resources available to it, which is within the control of the center manager. This metric allows for a fair comparison between different investment centers regardless of the amount of resources available to them.

Under the Notion of Controllability,it Is Appropriate for Top Management