In profit centers a. Managers are easy to evaluate because there is a simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically do not have the incentives to run their division efficiently

The correct answer is letter "A": Managers are easy to evaluate because there is a simple metric of how well they performed.

Explanation:

Austrian Business Professor Peter Drucker (1909-2005) coined the term profit center to refer to departments of a company that are treated as separate units of a business reporting their own profits or losses. The profit center results are recorded separately in the firm's Balance Sheet. A typical example of a profit center is the sales department.

As profit centers tend to be small units, measuring their managers' performance does not represent a difficult task based on standards or goals the main entity sets for the unit.

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