A System That Considers the Earnings Per Sales Dollar and the Investment

question 11

Multiple Choice

A system that considers the earnings per sales dollar and the investment used to generate those sales dollars is called:

• A)The economic value added system.
• B)The balanced scorecard system.
• C)The DuPont system.
• D)The residual income system.

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Definitions:

Direct Expense

Costs that can be directly tied to the production or sale of specific goods or services.

Indirect Expense

Costs that are not directly tied to a specific product or service, such as utilities or rent for a company.

Insurance

A financial product that provides protection against losses or damages, in exchange for premium payments.

Departmental Income Statement

An income statement that shows the financial performance of different departments within a company.