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7. John is the manager of a branch of a fast food restaurant. He is responsible for purchasing, hiring staff and managing the staff rotas for each shift. He is also responsible for advertising. He cannot make investment decisions.
Which of the following performance measures would be appropriate for assessing John’s performance?
1)Residual income
2)Customer satisfaction rankings
3) Contribution
A.2 only
B.1 and 2
C.1 and 3
D.2 and 3I dont get this one by anysense…. Can you do tell me what will be the answer and why
No 1 is incorrect as it’s stated that he cannot make investment decisions, which is a key component in calculating residual income.
So the answer is either A or D
Customer service – shows quality
And Contribution displays John’s effectiveness in managing operational aspects through variable costs.
So the answer is D
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