In the Financial Perspective,economic Value Added Would Be an Appropriate

question 41

Multiple Choice

In the financial perspective,economic value added would be an appropriate measure for which of the following goals?

• A)revenue growth
• B)cost reduction
• C)improving asset utilization
• D)risk management

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Definitions:

Corporate Advertising

Advertising aimed at establishing a favorable attitude toward a company as a whole, rather than promoting a specific product or service.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable expenses are deducted, indicating the proportion available to cover fixed costs and generate profit.

Net Operating Income

An accounting term that refers to the profit realized from a business's operations, after subtracting operating expenses from revenue, excluding tax and interest.

Absorption Costing

This accounting technique combines all costs associated with manufacturing, such as materials directly used, labor directly applied, and all categories of overhead, fixed or variable, in determining a product’s cost.