Profit Performance Analysis Software Available from IBM,Oracle,and SAS Help Managers

question 44

True/False

Profit performance analysis software available from IBM,Oracle,and SAS help managers assess and improve the profit performance of their lines of business,products,distribution channels,sales regions,and other dimensions critical to managing the enterprise.

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Definitions:

Financial Risk

The likelihood of experiencing a loss of money in a business operation or investment.

EBIT

A financial metric, Earnings Before Interest and Taxes, calculates a business's income by including all earnings and expenditures with the exception of those from interest and taxes.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed to variable costs a company has.

Variable Expenses

Costs that vary directly and proportionately with changes in production volume or business activity.