Which of the Following Statements Is a Reason for Using

question 58

Multiple Choice

Which of the following statements is a reason for using operating income or EBIT as a measure of performance in a profit center of a multinational corporation?

• A) It is much easier to calculate than other measures.
• B) It is the only measure available to the senior management of the parent company.
• C) It excludes interest and taxes, which are beyond the manager's control.
• D) Divisional managers will maximize output if this measure is used for management control.

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Definitions:

Electrolyte Balance

The maintenance of proper levels and ratios of electrolytes in the body, crucial for normal cell and organ function.

Hemorrhoids

Swollen and inflamed veins in the rectum and anus that cause discomfort and bleeding.

Pregnant Women

Females who are in the state of carrying a developing fetus within their body.

Sphincter Control

The ability to regulate the muscles that close the openings of the bladder and rectum, which are crucial for continence.