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Which of the following statements is a reason for using operating income or EBIT as a measure of performance in a profit center of a
Which of the following statements is a reason for using operating income or EBIT as a measure of performance in a profit center of a multinational corporation?
A)It is much easier to calculate than other measures. | ||
B) | It is the only measure available to the senior management of the parent company. | |
C) | It excludes interest and taxes, which are beyond the manager's control. | |
D) | Divisional managers will maximize output if this measure is used for management control. |
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