Explain the Three Shareholder Metrics Used in Market-Based Management

question 49

Essay

Explain the three shareholder metrics used in market-based management.

---

Definitions:

Variable Cost

Expenses that vary directly with the level of production or volume of operations in a business.

Period Cost

These are costs that are not directly tied to the production process and are expensed in the period in which they occur. Examples include selling, general, and administrative expenses.

Raw Materials

Basic materials used in the production process, transformed into finished goods through manufacturing or processing.

Computer Board

A printed circuit board used in a computer to which the processor, RAM, and other components are attached.