Examlex
Financial ratios can be used to assess which of the following aspects of a firm's performance?
Residual Income
A measure of net income after accounting for the cost of capital.
Activity Base
A measure used for allocating fixed costs to products or services based on the amount of activity.
Service Departments
Units within an organization that provide support to the profit-making departments, rather than directly contributing to profits.
Profit Margin
represents the percentage of revenue that remains as profit after all operating expenses, taxes, and costs have been deducted from total sales.
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