Listed Below Are Eight Accounting Terms Introduced or Emphasized in This

question 5

Essay

Listed below are eight accounting terms introduced or emphasized in this chapter: Each of the following statements may (or may not)describe one of these technical terms.In the space provided,indicate the accounting term described,or answer "none" if the statement does not correctly describe any of the terms.
(a)________ is the amount by which operating earnings exceeds a minimum acceptable return on the average invested capital.The minimum rate of return represents the opportunity cost of using the invested capital.
(b)________ is the operating income divided by the average invested capital associated with the generation of that income.
(c)________ is computed by dividing the operating income by the total sales for a particular business segment or product line.It tells managers the amount of earnings generated from a dollar of sales.
(d)________ give an employee the right to purchase a pre-specified number of shares at a pre-specified price within a certain future time period.They provide incentives for managers to increase stock prices.
(e)________ is the set of activities necessary to create and distribute a desirable product or service to a customer.
(f)________ is a specific type of residual income.It is computed by multiplying weighted average cost of capital by total assets minus current liabilities,and subtracting that product from the after-tax operating income.
(g)________ is a measure created by dividing sales by the average invested capital to generate those sales.It tells managers the amount of sales generated by a dollar of invested capital.
(h)________ is a system for performance measurement that links a company's strategy to specific goals,assesses progress towards those goals,and measures specific initiatives to achieve those goals.It is a systematic attempt to create a business performance measurement process that integrates objectives across four business lenses to achieve the organization's strategic goals.

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Definitions:

Concentration Ratios

Concentration ratios are measures that indicate the extent of market control by the largest firms within an industry, reflecting the degree of market competition.

High Concentration

A situation in a market where a small number of firms hold a large market share, often leading to reduced competition.

Herfindahl-Hirschman Index

A measure used to evaluate the level of competition within an industry, calculated by squaring the market share of each firm within the industry and then summing the resulting numbers.

Concentration Ratio

A measure used to assess the degree of market concentration by looking at the market share of the largest firms within the industry.