Which of the Following Performance Measures Will Increase If Inventory

question 60

Multiple Choice

Which of the following performance measures will increase if inventory decreases and all else remains the same? $\begin{array} { l l l } & \text { Return on Investment}& \text {Residual Income }\\\text { A) } & \text { Yes } & \text { Yes } \\ \text { B) } & \text { No } & \text { Yes } \\ \text { C) } & \text { Yes } & \text { No } \\ \text { D) } & \text { No } & \text { No } \end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Profit Test

A financial analysis conducted to determine the profitability or financial viability of a project, business, or product.

Reportable Segments

Identifiable business units within a corporation that are significantly engaging in business activities, generating revenues, and incurring expenses.

Identifiable Segments

Refer to portions or sections of a business that can be separately distinguished for analysis or accounting purposes, often based on their operating activities, geography, or products.

Reportable

A term used to describe information or data that must be disclosed or presented in a specified manner according to regulatory, legal, or professional requirements.