The Major Shortcoming of Using Income from Operations as an Investment

question 45

True/False

The major shortcoming of using income from operations as an investment center performance measure is that,it ignores the amount of assets invested in each center.

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Definitions:

Domestic Output

The aggregate monetary value of goods and services created within a country's borders throughout a specified period.

Discrimination Coefficient

A measure used to quantify the extent to which prices are adjusted based on customer characteristics in markets where price discrimination occurs.

African Americans

A racial or ethnic group in the United States characterized by an ancestry linked to Africa, particularly sub-Saharan Africa.

Wage Differential

The variation in wages earned by individuals in different jobs, industries, geographic locations, or by workers with varying skill levels.