Measuring The Performance Of Profit Center Manager


1. Which one of the following options is most appropriate to measure the performance of the manager of a profit center?

A. Net profit
B. Revenue less variable expenses
C. Contribution to indirect expenses
D. Revenue less controllable expenses

2.  If customers value fast delivery, service and quality, what must the organization do to effectively manage the performance of its activities?

A. Measure delivery, service and quality
B. Measure the cost of delivery, service and quality
C. Measure the profit contribution of delivery, service and quality
D. Measure the return on investment of delivery, service and quality


These multiple choice questions belong to Corporate Strategy and the 1st question discusses about measuring the performance of manager at profit center and the 2nd question is about the organization’s responsibility if the customer wants fast delivery, service and quality.

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