1B3G A COMPANY IS CONCERNED THAT ITS DIVISIONAL MANAGERS ARE NOT MAKI...

142. CSO: 1B3e LOS: 1B3g

A company is concerned that its divisional managers are not making decisions that are in

the best interests of the overall corporation. In order to prevent this, the company should

use a performance evaluation system that focuses on

a. flexible budget variances.

b. operating income.

c. controllable costs.

d. residual income.

52