The ________ Ratio Is a Measure of a Segment's Profitability

question 23

Short Answer

The ________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

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Definitions:

Diseconomies of Scale

The scenario where costs start increasing as a company or project becomes too large, leading to inefficiency.

Bureaucratic

Relating to a system of government in which most of the important decisions are made by state officials rather than by elected representatives.

Large Management

Refers to the administration and execution of strategic objectives within large organizations, involving complex structures and substantial resource allocation.

Increasing Returns

The phenomenon where an increase in the scale of production leads to a proportionally larger increase in output.