Question

A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager is being evaluated using the ________ budget approach.

Answer 1

Profit-budget approach

Step-by-step explanation:

As the name implies, in the Profit-budget approach, managers are evaluated on a profit/cost basis.

In other words, their performance is assessed based on the difference between the sales revenue that their deparment generates, and the cost of producing and selling the goods.