A Common Mistake That Many Managers Tend to Make Is

question 106

Multiple Choice

A common mistake that many managers tend to make is focusing on only one type of metric because they are easier to measure. Which type of metric do they focus on?

• A) Effectiveness MIS metric
• B) Efficiency MIS metric
• C) Endurance MIS metric
• D) Product sales metric

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Definitions:

Accounting Rate of Return

A financial metric that measures the return on investment expected from a project or asset, calculated as the average annual profit divided by the initial investment cost.

Simple Rate of Return

A calculation that estimates the profitability of an investment, without factoring in the time value of money or cash flows over time.

Unadjusted Rate

A rate or measure that has not been modified to account for factors or variables that could affect its interpretation or accuracy.

Required Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset or project, considering the risk involved.