Department managers at Boswell Department Store are allowed considerable discretion in both sourcing and pricing of products,based on local tastes and competition,as well as being responsible for departmental staffing.Based on the concept of the responsibility center,which of the following would not be a performance measure that would be useful in evaluating the performance of departmental managers at the stores?

Question

Quizplus · Accepted Answer

Trends in general and administrative expenses for each store would not be useful in evaluating the performance of departmental managers as they do not have direct control over these expenses. These expenses are determined at a higher level of the organization and are not within the department manager's responsibility center. The other options - departmental profit compared to budgeted departmental profit, growth in department sales compared to the prior period sales, and departmental customer satisfaction - are all measures that directly relate to the department manager's responsibilities and therefore would be useful in evaluating their performance.

Department Managers at Boswell Department Store Are Allowed Considerable Discretion