The ________ Method of Profitability Analysis Recognises the Two Basic

question 98

Multiple Choice

The ________ method of profitability analysis recognises the two basic ingredients in profit-making: increasing profit per dollar of revenues and using assets to generate more revenues.

• A)balanced scorecard
• B)DuPont
• C)residual-income
• D)economic value added

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Definitions:

Produced Goods

Produced goods are items that have been manufactured or processed from raw materials, ready for sale or distribution.

Services

Activities or benefits provided to consumers that do not result in the ownership of a tangible product.

Capital

Financial assets or the monetary value of assets, such as buildings and machinery, invested in a business to create more wealth.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.