Which One of the Following Measures Is Frequently Used to Evaluate

question 61

Multiple Choice

Which one of the following measures is frequently used to evaluate the performance of the manager of an investment centre, but NOT profit centres?

• A)the amount of profit generated
• B)the percentage increase in profit over the previous year
• C)controllable margin
• D)the rate of return on funds invested in the centre

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Definitions:

Current Payables

Short-term obligations or debts a company owes to its creditors that are due within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Payroll

The total amount of wages and salaries paid by a company to its employees.

Fundamental Analysis

Assessment of firm value that focuses on earnings and dividends prospects, expectations for future interest rates, and risk evaluation.