During the Expansion Phase of the Business Cycle

question 36

Multiple Choice

During the expansion phase of the business cycle

• A)production increases.
• B)employment decreases.
• C)income decreases.
• D)unemployment increases.

Understand key financial metrics used to evaluate division performance including sales, net profit, assets, and return ratios.

Analyze the impact of interdivisional transactions and pricing on overall corporate performance.

Evaluate the financial performance of decentralized divisions using return on sales, asset turnover, and return on assets.

Understand the factors influencing the economic value added (EVA) and how it differs from return on investment (ROI).