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Profit Center Performance

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How is performance evaluated for a profit center?

a. Actual costs incurred compared to budgeted costs.
b. Actual segment margin compared to budgeted segment margin.
c. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.
d. None of the above.

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Carol Sargent, PhD
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  • MSc, University of Virginia
  • PhD, Georgia State University
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