Which of the Following Is Not a Measure That Management

question 116

Multiple Choice

Which of the following is not a measure that management can use in evaluating and controlling investment center performance?

• A) return on investment
• B) negotiated price
• C) residual income
• D) income from operations

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Definitions:

Accumulated Postretirement Benefit Obligation

The estimated total future postretirement benefits that a company is expected to pay, recognized as a liability.

Pension Liability

The present value of the future retirement benefits that an employee has earned up to date, representing an obligation of the employer to provide pension benefits to its employees.

Projected Benefit Obligation

Projected Benefit Obligation (PBO) is an actuarial valuation that estimates the total amount a company expects to pay for employee pension benefits in the future.

Accumulated Benefit Obligation

The actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered prior to that date, whether or not the benefits are vested.