Which of the following is a measure of a cost center manager's performance?

A) budget performance report
B) return and residual income measures
C) divisional income statements
D) balance sheet

Question

Which of the following is a measure of a cost center manager's performance?A)  budget performance reportB)  return and residual income measuresC)  divisional income statementsD)  balance sheet

Roberto Aguilar · Accepted Answer

Final Answer : A, Explanation :  A budget performance report would measure a cost center manager's performance by comparing actual costs incurred to the budgeted costs for the same period. This provides insight into the manager's ability to control and manage costs within their department. Return and residual income measures and divisional income statements are more relevant for measuring the performance of profit center managers, while the balance sheet provides information on the overall financial position of the company.

Which of the following is a measure of a cost center manager's performance?

A) budget performance report
B) return and residual income measures
C) divisional income statements
D) balance sheet

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