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Many companies view performance margin as a more useful tool than a responsibility margin for evaluating segment managers

Business

Many companies view performance margin as a more useful tool than a responsibility margin for evaluating segment managers. This is because:

A. Managers have no control over traceable fixed costs.

B. The performance margin is not affected by the size of the department.

C. Performance margin indicates the change in operating income that would result from closing the department

D. Performance margin includes only those revenue and costs under the manager's direct control

San Francisco's famous St. Francis Hotel is owned by Westin Hotel and Resort Group. One of the unique services provided by San Francisco's St. Francis Hotel is cleaning and polishing coins (pocket change) for the guests. From the standpoint of hotel management, this money laundry should be viewed as:

A. A contribution center.

B. A cost center.

C An investment center.

D. A profit center (other than an investment center).

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