The Standard of Performance That Measures Efficiency at the Corporate

question 62

Multiple Choice

The standard of performance that measures efficiency at the corporate level of the organization is known as

• A)cost of goods sold.
• B)capital costs.
• C)net sales.
• D)operating costs.

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Definitions:

Decentralized Units

Units or divisions of a larger organization that operate semi-independently, often with their own decision-making powers.

Investment Center

A part of a company treated as a separate business, responsible for its profit and investment decisions.

Profit Center

A segment or area of a business that is directly responsible for generating profit through its operations and is assessed based on its profitability.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue, calculated as sales divided by average assets.