Which of the Following Is the Least Effective Measure of Operating

question 59

Multiple Choice

Which of the following is the least effective measure of operating performance?

• A) ROC
• B) ROA
• C) ROE
• D)All of these are equally ineffective measures of operating performance.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the cost effectiveness of producing goods.

Marginal Cost Increases

The rise in the cost to produce one additional unit of a good or service.

Marginal Product

The additional output that is produced as a result of adding one more unit of a specific input, holding all other inputs constant.