A Measure of the Manager's Ability to Control Expenses and Increase

question 46

Multiple Choice

A measure of the manager's ability to control expenses and increase revenues to improve profitability is:

• A) Residual income (RI) divided by level of invested capital.
• B) Return on equity (ROE).
• C) Return on investment (ROI).
• D) Return on sales (ROS).
• E) Asset turnover (AT).

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Definitions:

Ethical Issues

Pertains to questions and situations that involve distinguishing between right and wrong behavior, often in moral terms, within a professional or social context.

Federal Government

A system of government where power is divided between a central (national) government and various regional governments.

Criminal Justice

The system of practices and institutions of governments directed at upholding social control, deterring and mitigating crime, and sanctioning those who violate laws with criminal penalties and rehabilitation efforts.

Law Enforcement

The system by which members of society act in an organized manner to enforce the law by discovering, deterring, rehabilitating, or punishing people who violate the rules and norms governing that society.