Which of the Following Measures the Overall Effectiveness of Management

question 5

Multiple Choice

Which of the following measures the overall effectiveness of management in generating profits with its available assets?

• A)return on investment
• B)economic order quantity
• C)target-on-sales
• D)retained earnings

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Definitions:

Source Document

A piece of evidence, such as an invoice or receipt, that records a financial transaction.

Manufacturing Overhead-Applied

Indirect costs related to manufacturing that are assigned to products based on a predetermined rate.

Overhead Applied Rate

A rate calculated to allocate indirect costs to cost objects based on a predetermined formula.

Direct Labor Hours

The total time workers or employees spend directly working on goods or services that are being produced.