Asked by Joseph Aguero on Sep 24, 2024
Managers of profit centers are usually given a lot of discretion because
A) They always do an excellent job
B) The company can never judge their performance
C) The company has a clear performance evaluation metric
D) They rarely ever do a good job
Profit Centers
Divisions or branches of a business that are treated as separate entities for profit calculation and management purposes.
Discretion
The freedom to decide what should be done in a particular situation, often within certain guidelines or rules.
Performance Evaluation
The process of assessing the effectiveness, efficiency, and productivity of an individual, group, or entity.
- Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.
Learning Objectives
- Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.