Which of the Following Is a Limitation of Profit Measurement

question 11

Multiple Choice

Which of the following is a limitation of profit measurement of a firm?

• A)It stresses on the qualitative aspects of a firm's financial performance.
• B)It is influenced by unpredictable economic environment.
• C)It focuses only on the present performance of an organization.
• D)It is oriented towards the non-financial goals of an organization.

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Definitions:

Marginal Utility

Marginal utility represents the additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.

Total Utility

The overall satisfaction or value a consumer derives from consuming a certain quantity of goods or services.

Total Utility

Full contentment gained from the intake of a particular total volume of a good or service.

Marginal Utility

The additional satisfaction or utility that a consumer experiences from consuming one more unit of a good or service.