Asked by Shashank Neela on Sep 24, 2024

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​In profit centers

A) ​Managers are difficult to evaluate because there is no simple metric of how well they performed
B) Managers typically do not have the information to run their division efficiently
C) Managers' decisions rarely affect other divisions
D) ​Managers typically are incentivized to run their division efficiently

Profit Centers

Divisions or departments within an organization that are directly responsible for generating its income.

Information

Data that has been processed or structured in a meaningful way to be useful for decision-making or analysis.

  • Understand the implications of various recognition and evaluation methods on the managerial choices within divisions and the resultant divisional efficiency.
  • Acquire insights into the repercussions of managerial choices on the entirety of the company's operations and inter-departmental relations.
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TP
Trusha Patelabout 3 hours ago
Final Answer :
D
Explanation :
Profit centers are responsible for generating revenue and earning profit for the organization. Therefore, managers of profit centers are typically incentivized to run their division efficiently, as their performance is directly linked to the financial performance of the organization. This can be done by controlling costs, increasing revenues, and maximizing profits. While evaluating the performance of managers of profit centers may not be as simple as in cost centers or revenue centers, there are generally established metrics and targets that can be used to evaluate their success. Managers of profit centers also have the information needed to run their division efficiently and their decisions can have a significant impact on the financial performance of the organization.