Which of the Following Statements Is a Reason for Using

Multiple Choice

Which of the following statements is a reason for using operating income or EBIT as a measure of performance in a profit center of a multinational corporation?

A) It is much easier to calculate than other measures.
B) It is the only measure available to the senior management of the parent company.
C) It excludes interest and taxes, which are beyond the manager's control.
D) Divisional managers will maximize output if this measure is used for management control.