A measure frequently used to evaluate the performance of the manager of an investment center is percentage increase in profit over the previous year. departmental gross profit. the amount of profit generated. the rate of return on funds invested in the center.

A measure frequently used to evaluate the performance of the manager of an investment center is percentage increase in profit over the previous year. departmental gross profit. the amount of profit generated. the rate of return on funds invested in the center.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 3PB: Evaluate the two departments for Moxie Products. Compare the years performance of the two...

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Question

A measure frequently used to evaluate the performance of the manager of an investment center is

percentage increase in profit over the previous year.

departmental gross profit.

the amount of profit generated.

the rate of return on funds invested in the center.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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