Which of the Following Is Not a Performance Criterion for Evaluating

question 6

Multiple Choice

Which of the following is not a performance criterion for evaluating and controlling a private fleet?

• A) miles operated (empty and full)
• B) human resource hours
• C) vehicle operating hours
• D) total gallons of fuel used by entire fleet

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Definitions:

Pure Profit

The excess amount remaining after all operational, fixed, and variable costs have been subtracted from total revenue.

Accounting Profits

The difference between total revenue and explicit costs of a business, as calculated for financial reporting and tax purposes.

Explicit Costs

Direct, out-of-pocket payments for wages, materials, rent, and other expenditures incurred in the conduct of a business.

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied.