A division manager is evaluated based on his division's revenues less the budgeted cost of his division.This is an example of:
A)A cash flow budget approach
B)A capital budget approach
C)A revenue budget approach
D)An expense budget approach
E)A profit budget approach

Question

Quizplus · Accepted Answer

Managers may be evaluated on the difference between the revenues generated by the sales of goods and services and the budgeted cost of making those goods and services (a profit budget approach).

A Division Manager Is Evaluated Based on His Division's Revenues