Which of the Following May Be the Best Measure of Company

question 104

Multiple Choice

Which of the following may be the best measure of company performance?

• A) EVA
• B) Net income
• C) ROA
• D) ROE

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Definitions:

Administrative Expense

Costs related to the general operation and administration of a business, including salaries of executive personnel, office supplies, and utilities.

Direct Labor Cost

The total cost of wages paid to labor directly involved in the production of goods or services.

Manufacturing Overhead Cost

Expenses related to manufacturing that are not directly tied to a specific product, such as factory rent and utilities.

Selling Expense

Costs incurred to secure customer orders and deliver the finished product to the customer, including advertising and sales staff salaries.