When a divisional manager is evaluated based on the operating income of his division,this is an example of a(n)_____________ budget approach.
A) cash flow
B) capital
C) revenue
D) expense
E) profit

Question

Quizplus · Accepted Answer

With a profit budget,managers are evaluated on the difference between revenues generated by the sale of goods and services and budgeted cost of making those goods and services,which is the operating income.

When a Divisional Manager Is Evaluated Based on the Operating