Which of the Following Might You Expect to See Being

question 54

Multiple Choice

Which of the following might you expect to see being used as a performance measure for a profit centre?

• A) Return on investment
• B) Actual business unit profit compared with budget business unit profit
• C) Standard cost variances
• D) Both return on investment AND standard cost variances

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Definitions:

Cash Collections

The process of gathering and managing payments received from customers or clients.

Credit Sales

Sales transactions where the payment is deferred, and goods or services are provided on credit.

Raw Materials Purchases

The total cost of raw materials bought for use in the production of goods or products during a specific accounting period.

Accounts Payable

Liabilities or amounts owed by a company to suppliers for purchases made on credit.