Financial and Nonfinancial Performance Measures Quiz PDF: Questions and Answers - 51

MCQ 251: The formula to calculate return on investment, according to profitability analysis in DuPont method is

1. return on sales * investment turnover
2. return on sales + investment turnover
3. return on sales - investment turnover
4. investment turnover + residual income

MCQ 252: The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

1. relevant purchase order costs
2. relevant inventory carrying costs
3. irrelevant inventory carrying costs
4. relevant opportunity cost of capital

MCQ 253: The focus on budget cost of all the activities necessary to sell and produce market offerings is known as

1. cost based budgeting
2. activity based budgeting
3. production based budgeting
4. raw material budgeting

MCQ 254: The goodness of fit is used to measure the wellness of

1. actual values
2. predicted values
3. residual values
4. indexed values

MCQ 255: If the total sales are $355000, the beginning inventory is $23000 and the ending inventory is $15000, then total production would be

1. $363,000
2. $463,000
3. $393,000
4. $493,000