Asked by Bhumika Girish on Sep 24, 2024
Which of the following is TRUE?
A) Maximizing division profits can sometimes lead to reducing company-wide profits
B) Managers of profit centers are not given any discretion in their decision making
C) Profit centers usually require the highest degree of attention of corporate executives
D) A manager being rewarded on division revenues has no incentive to make good decisions for his division
Division Profits
The earnings generated from a specific department or segment within a larger organization.
Profit Centers
Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.
- Contrast the aim of increasing divisional profits with the objective of boosting profits for the entire corporation.
Learning Objectives
- Contrast the aim of increasing divisional profits with the objective of boosting profits for the entire corporation.