Which of the Following Is a Measure Commonly Used to Evaluate

question 43

Multiple Choice

Which of the following is a measure commonly used to evaluate asset utilization?

• A)return on investment
• B)total revenue
• C)market share
• D)net income

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Eliminate

To completely remove or get rid of something.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each, to more accurately measure the cost and profitability of products/services.

Relevant Cost

A cost that should be considered when making decisions.