Which of the Following Might You Expect to See Being

question 70

Multiple Choice

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

• A) Return on investment
• B) Actual business unit profit compared with budget business unit profit
• C) Standard cost variances
• D) All of the given answers

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Definitions:

Cost of Equity

The yield a company needs to determine whether an investment satisfies its capital return criteria.

Risk-Free Rate

The expected return on an investment that carries no risk, often shown through the yield of government bonds.

Expected Stock Market Return

The predicted average return of the stock market or a specific segment of it over a specific period, considering historical trends and market conditions.

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.