Which of the Following Is Not a Way a Company

question 42

Multiple Choice

Which of the following is not a way a company can use information about activities to manage its operations?

• A)Activity-based budgeting
• B)Activity-based resource reduction
• C)Activity-based costing
• D)Activity-based budgeting,activity-based resource reduction,and activity-based costing.

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Definitions:

Profit Margin

The percentage of revenue that remains after all expenses have been deducted from sales, indicating the financial health and profitability of a business.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; calculated as sales divided by the average invested assets.

DuPont Formula

The DuPont Formula is a financial analysis method that decomposes a company's return on equity into three parts: profitability, asset efficiency, and financial leverage, to understand driving factors behind performance.

Profit Margin

A financial performance ratio that calculates the percentage of revenue that exceeds the costs of goods sold, representing the portion of sales that turns into profit.