Which of the Following Would Be the Best Measure of Performance

question 166

Multiple Choice

Which of the following would be the best measure of performance for a profit center?

• A) Residual income
• B) Return on investment (ROI)
• C) Segment margin
• D) Economic value added (EVA)

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Definitions:

Regression Analysis

Regression analysis is a statistical method used to examine the relationship between one dependent variable and one or more independent variables, predicting the former based on the latter.

Regression Analysis

A statistical method that investigates the relationship between a dependent variable and one or more independent variables to forecast outcomes or assess predictions.

Cost Equation

A mathematical formula that relates cost to its determinants, such as output level, activity level, or other cost drivers.

Delivery Costs

Expenses related to transporting goods from a seller to the purchaser, including shipping, handling, and packaging fees.