Which of the Following Financial Performance Measures Can Be Used

question 135

Multiple Choice

Which of the following financial performance measures can be used to compare potential projects of different sizes?

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

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Definitions:

MC = ATC

A condition where the Marginal Cost of producing one more unit is exactly equal to the Average Total Cost, typically representing the point of productive efficiency.

Business Fundamentals

Basic principles and practices essential for the successful operation of a business, such as finance, marketing, operations, and management.

Entrepreneurial Success

The achievement of desired goals and outcomes by an entrepreneur, typically measured by factors such as profitability, growth, and sustainability of a business venture.

Entrepreneurial Activities

Initiatives undertaken by individuals to launch, develop, and manage a business venture along with its risks in order to make a profit.