Which of the Following Statements Is a Reason for Using

question 58

Multiple Choice

Which of the following statements is a reason for using operating income or EBIT as a measure of performance in a profit center of a multinational corporation?

• A) It is much easier to calculate than other measures.
• B) It is the only measure available to the senior management of the parent company.
• C) It excludes interest and taxes, which are beyond the manager's control.
• D) Divisional managers will maximize output if this measure is used for management control.

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Definitions:

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by converting energy from stimuli into nerve impulses.

Hollow Interior

Refers to the inner empty space or cavity within an organ or structure.

Filter Blood

The process of removing waste products and excess substances from the bloodstream, primarily performed by the kidneys.

Glandular

Relating to or affecting the glands of the body, often referring to tissues that secrete hormones or other substances.