In Service Firms, Improvement in Long Term Profitability Is Best

question 71

Multiple Choice

In service firms, improvement in long term profitability is best measured by all the following except:

• A)Staff utilization.
• B)Net revenues.
• C)Collections of customer accounts.
• D)Materials usage.

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Definitions:

Feedforward Control

A management technique that focuses on the regulation of future actions based on current performance trends and forecasts to prevent problems before they arise.

Liquidity Ratios

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Mission and Vision

Statements that articulate a company's purpose and aspirations, guiding its strategy, goals, and organizational culture.