Earnings per share projections and actual earnings per share are calculated for the company as a whole. There is no such thing as earnings per share for an individual division. Therefore, earnings per share projections are not considered an appropriate goal for measuring a division manager's efficiency for a budgeting period.
A targeted reduction in the organizational structure for a division is considered an appropriate goal for measuring a division manager's efficiency for a budgeting period because the division's actual reduction accomplished can be compared with the targeted reduction to measure the manager's performance.
A targeted share of the market for a division is considered an appropriate goal for measuring a division manager's efficiency for a budgeting period because the division's actual share of the market can be compared with the targeted share of the market to measure the division manager's performance.
Budgeted operating income for a division is considered an appropriate goal for measuring a division manager's efficiency for a budgeting period because actual operating income can be compared with budgeted operating income to measure the division manager's performance.
|
