A Measure Frequently Used to Evaluate the Performance of the Manager

question 45

Multiple Choice

A measure frequently used to evaluate the performance of the manager of an investment center is

• A) the amount of profit generated.
• B) the rate of return on funds invested in the center.
• C) the percentage increase in profit over the previous year.
• D) departmental gross profit.

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Definitions:

Operating Activities Cash Flows

Cash inflows and outflows related to the core business operations of an entity.

Income Statement

An Income Statement is a financial statement that shows a company's revenues and expenses over a specific period, culminating in net profit or loss.

Delivery Service Revenue

Income earned from providing delivery services to customers, part of operating revenue for businesses in the delivery industry.

Packing Supplies

Materials used for wrapping or protecting goods during shipment or storage, recognized as part of inventory costs in business accounting.