On what is a manager of a profit center evaluated?

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Marielle Satterfield asked a question: On what is a manager of a profit center evaluated?
Asked By: Marielle Satterfield
Date created: Tue, Aug 17, 2021 5:56 AM
Date updated: Wed, Oct 5, 2022 8:58 AM

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A profit center is a department that incurs costs but also earns revenue by selling its goods and services to customers. Managers of profit centers are evaluated on their ability to control costs as well their ability to generate revenue and profits, which are revenues minus expenses, in their departments.

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Answer to: A manager of a cost center is evaluated mainly on: a. the profit that the center generates b. his or her ability to control costs c. the... for Teachers for Schools for Working Scholars...

A manager of a cost center is evaluated mainly on a. the profit that the center generates. b. his or her ability to control costs. c. the amount of investment it takes to support the cost center. d. the amount of revenue that can be generated. 106.

Profit center managers are, then, responsible for doing their best to meet or exceed this goal and for explaining the reasons for any variances and what they are doing to correct unfavorable ...

Ratings 98% (51) 50 out of 51 people found this document helpful. This preview shows page 38 - 41 out of 73 pages. View full document. See Page 1. 105. A manager of a cost center is evaluated mainly on a. the profit that the center generates. b. his or her ability to control costs.

There are two types of profitability measurement tool in a profit center. The first is a measure of management performance where the focus is on evaluating the working of the manager and is also used for controlling, coordinating, and planning the daily activities of the profit center.

Performance Evaluation Reports for Cost, Revenue, and Profit Centers. Performance evaluation requires managers to have a benchmark to use as a guide for future periods. This benchmark is communicated to managers via a budget for their responsibility center.

A profit center manager is going to have to both increase sales by generating additional revenue and decrease costs as a percentage of revenue. Failure to do so will have a disproportionate effect on the entire company, compared to managers in other areas.

Question The performance of a profit center manager is evaluated by comparing the profit center’s operating income:A. with the other profit centers’ operating incomeB. with the profit center’s budgeted operating income C. with the organization’s budgeted net incomeD. with the organization’s non-operating income

See Page 1. 105. A manager of a cost center is evaluated mainly on a. the profit that the center generates. b. his or her ability to control costs. c. the amount of investment it takes to support the cost center. d. the amount of revenue that can be generated.

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