Under the Notion of Controllability, It Is Most Appropriate for Top

question 79

Multiple Choice

Under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of:

• A) Profits generated in relation to the amount of capital invested in the unit.
• B) Returns expressed as a percentage.
• C) Profits expressed in absolute terms.
• D) Operating profit generated.
• E) Returns expressed in actual dollar amounts.

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Definitions:

Long-Run

A period in economics during which all factors of production and costs are variable, allowing full adjustment to change.

Indifference Principle

A concept in economics that suggests a consumer has no preference between two bundles of goods because both provide the same level of utility or satisfaction.

Housing Prices

The monetary value assigned to residential properties, influenced by factors like location, demand, and economic conditions.

Living Conditions

The environmental and social factors impacting the day-to-day life and wellbeing of people.