Which One of the Following Is a Performance Indicator for an Investment

question 86

Multiple Choice

Which one of the following is a performance indicator for an investment centre, but NOT for a profit centre?

• A)controllable margin
• B)asset utilization effectiveness
• C)revenues
• D)controllable costs

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Definitions:

Fixed Costs

Expenses that do not change in relation to the level of goods or services produced by a business, such as rent, salaries, and loan payments.

Off Season

A period of the year when a particular activity, typically related to tourism or agriculture, is at its lowest level of demand.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Perfectly Competitive

Describes a market structure where numerous small firms compete against each other, and no single entity has market power to set the price of a homogeneous product.