Which of the Following Is One of the Most Important

question 36

Multiple Choice

Which of the following is one of the most important internal business process measures?

• A) On-base percentage
• B) Activity-based costing
• C) Six Sigma
• D) Return on equity

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of a business, without controlling it.

Common Shares

Equity investments that represent ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Equity Method

An accounting method used to assess the profits earned through the investment in another company by updating the investment's value based on the investee's net income or loss.

Journal Entries

The record of financial transactions in an accounting system, entered as debits and credits to various accounts.