Using What Measure May Cause a Manager to Reject a Project

question 127

Multiple Choice

Using what measure may cause a manager to reject a project that would be profitable for the company as a whole?

• A) ROI
• B) Residual income
• C) Operating income
• D) EVA

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Definitions:

Per-unit Basis

A method of expressing costs, revenues, or other financial measures on a per unit of production, sale, or other relevant unit basis.

Level Of Activity

A measure of the volume of production, work, or business operations, often influencing the costs and expenses of a company.

Production Supervisor's Salary

The financial compensation awarded to an individual overseeing the work and activities within a manufacturing or production setting, ensuring efficiency and quality.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.