Why are profit center managers evaluated on segment margin instead of net operating income?

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Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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Question Posted: Feb 27, 2015 10:19 AM

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How are profit center managers commonly evaluated?
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Why are profit center managers evaluated on segment margin instead of net operating income?

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Profit center managers are evaluated on segment margin because that is ...View the full answer

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