A Performance Measurement Technique That Allows Managers to Focus Their

question 43

Multiple Choice

A performance measurement technique that allows managers to focus their attention on maximizing an amount of earnings above a minimum required ROI is known as:

• A)optimization.
• B)the DuPont model.
• C)residual income.
• D)transfer pricing.

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Definitions:

Opportunity Costs

The cost of choosing one alternative over others, representing the benefits an individual, investor, or business misses out on when choosing one option over another.

Resource Shiftability

The flexibility with which resources can be shifted from producing one product to another in response to changing market demands.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced in a given time period with available resources.

Consumer Goods

Products and commodities bought and used by individuals and households for personal consumption.