Question
J&J is a subsidiary of PARENT Co that provides cloud and virtualization software and services. J&J operates divisions within five regions. Regional managers are held
J&J is a subsidiary of PARENT Co that provides cloud and virtualization software and services. J&J operates divisions within five regions. Regional managers are held accountable for marketing, advertising, and sales decisions, and all costs incurred within their regions. In addition, regional managers decide whether new divisions will open where the divisions will be located, and whether the divisions will lease or purchase the facilities. Division managers, in contrast , are accountable for marketing, advertising, sales decisions, and costs incurred within their divisions. Ideally, on the basis of information, what type of evaluations measure should J&J use to evaluate its regions.
Regions | Divisions | |
a | Current Income compared to Budgeted Income | Current Income comparet to Budgeted cinome |
b | Current income compartged to budgeted income | residual income |
c | Current income compared to budgeted income | current sales revenue compare dto budgeed sales revenue |
d | residual income | current income compared to budgeted income |
e | residual income | resideual income |
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