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.