A(n) ________ Is a Numerical Index of Performance That the Firm

question 48

Multiple Choice

A(n) ________ is a numerical index of performance that the firm wants to maintain.

• A) control standard
• B) performance ratio
• C) accounting standard
• D) benchmark

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Financial Advantage

The benefit gained from making a particular financial decision, often represented by gains in revenue or reductions in costs.

Traceable Fixed Costs

Constant expenses directly associated with a particular product line or business division.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues but before incomes and taxes are accounted for.