When Measuring a Company's Performance, Which of the Following Is

question 87

Multiple Choice

When measuring a company's performance, which of the following is NOT a lag indicator?

• A) Operating income for the last month
• B) Ratio analysis
• C) Variance analysis
• D) The expected growth in future demand for a company's products

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Definitions:

Grows

an increase in size, number, value, or strength.

Investment

Allocating financial resources with the aim of generating revenue or gains.

Interest

A charge for borrowed money, generally a percentage of the amount borrowed.

Simple Interest Rate

A method of calculating interest where the charge is based only on the original principal, not on the accumulated interest.