Which Measure Is Limited by the Fact That It Uses

question 176

Multiple Choice

Which measure is limited by the fact that it uses accounting income?

• A)ROI
• B)RI
• C)EVA
• D)All of the above

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Definitions:

Cost of Goods Sold

Costs directly associated with the manufacturing of products that a business sells.

Collection Period

The standard timeframe for a corporation to collect receivables from its clientele.

Receivables Period

is the average number of days it takes for a business to collect payments from its customers after a sale has been made, indicating the efficiency of its credit and collection policies.

Credit Sales

Transactions where the customer buys goods or services on account, paying the supplier at a later date.