Asked by Shayla Nguyen on Jul 04, 2024
Verified
Profit center managers are evaluated on their ability to generate revenues in excess of costs.
Profit Center Managers
Individuals responsible for overseeing a unit or department within an organization that directly contributes to its profit.
Revenues
Income generated from normal business operations and includes discounts and deductions for returned merchandise.
Costs
The amount of money or resources expended in order to obtain something or achieve a goal.
- Acknowledge the measurement standards for assorted types of centers, including cost, profit, and investment.
Verified Answer
RJ
Rosalia JimenezJul 11, 2024
Final Answer :
True
Explanation :
Profit center managers are responsible for generating profits for their department or division, which is calculated by subtracting costs from revenues. Therefore, they are evaluated on their ability to generate revenues in excess of costs.
Learning Objectives
- Acknowledge the measurement standards for assorted types of centers, including cost, profit, and investment.
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