What factors affecting ROI does the DuPont method of profitability analysis highlight?

Q: How do companies add value, and what arethe dimensions of performance that customersare expecting of…

A: Step 1: The companies may add through the following things: Research and development, Proper…

Q: Which statement below best describes a profit center?a. The authority to make decisions affecting…

A: Answer c. The authority to make decisions over the most significant costs of operations, including…

Q: What is the biggest disadvantage of using ROI to evaluate investment centers?

A: Return on Investment: Under return on Investment, the investment opportunity with the highest rate…

Q: What is the incentive of management in computing efficiency ratios?

A: Efficiency ratios examine a company's ability to use its assets and handle its commitments…

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: What is the concentration ratio for this industry?

A: Answer: 48.5%

Q: What does it mean to use the DuPont model to help explain a decrease in ROI?

A: Introduction: DuPont analysis is done to find out the various drivers that account for the return on…

Q: Most organizations use residual income instead of return on investment (ROI) as a performance…

A: The Following statement is True because Residual Income is much better than Return on Investment…

Q: how the output of horizontal analysis and vertical analysis can be compared to industry averages…

A: /Even /investigation /is /used /in /business /report /examination /to /rely on recorded info, like…

Q: What is the major shortcoming of using operating income as a performance measure for investment…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: What is the fundamental flaw in utilizing income from operations as a success metric for investment…

A: Introduction: Investment centers are companies that make investments to boost their profits.

Q: How the concepts and system of benchmarking could support one company to improve its…

A: Introduction: For any organization, benchmark is acknowledgement for its outstanding operating…

Q: What is the primary disadvantage of utilizing revenue from operations to evaluate investment…

A: Investment centers are businesses that invest in other companies to boost their profits.

Q: What variable affecting gross profit should the manager focus his attention? Why?

A: Gross Profit is the profit arrived at by deducting cost of goods sold from the turnover or the…

Q: “A financial productivity measure contains more information than an operational productivity measure…

A: Introduction: Operational productivity is the ratio of output units to input units, and physical…

Q: What is operating profit margin?

A: The operating profit is the profit earned during the year after deducting all the operating expenses…

Q: Why might an analyst incorporate the industry-market-size factor and the interrelationships among…

A: Operating Income: The outcome of deduction of operating expenses and depreciation from the gross…

Q: In what ways might using ROI as a performance indicator for investment centers lead to poor…

A: ROI: It measures the amount of return on a specific investment to the cost of the investment. The…

Q: Discuss the importance of measuring and managing marketing return on investment?

A: Marketing return on investment is refer as the return on investment generate from marketing…

Q: What is value-chain analysis? What role does it play in strategic cost analysis?

A:

Q: How might managerial incentives affect the analysis of earnings persistence?

A: Analysis of earnings persistence Earning persistence which was indicating that the total earning…

Q: How does the cost system affect the financial position of the firm?

A: Cost system is the system which is designed to evaluate the monitor the cost incurred by the…

Q: What is cost-efficiency according to profit projection?

A: Cost-effective usually means to reduce the expenses and excel in what you are doing or maintaining…

Q: How would non-financial performance indicators help to improve the performance of the company?…

A: Introduction: In its most basic form, non-financial performance metrics give information on a…

Q: What factors affecting ROI does the DuPont method of protability analysis highlight?

A: Return on Investment (ROI): It is an accounting measure of income divided by an accounting measure…

Q: What is the major shortcoming of using income from operations as a performance measure for…

A: Investment centre are who do investment of organisation to increase income.

Q: What is an operational productivity measure and a financial measure?

A:

Q: return

A: The term profitability refers to metric which is used to measure profits. An analysis is made on how…

Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…

A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: Why does the balanced scorecard include financial performance measures as well as measures of how…

A: Balanced Score Card: Balanced Score Card is a tool used for determining the impact of the major…

Q: What is the major shortcoming of using income from operations as a performance measure for…

A: Investment center: A department or unit or division of a corporation where its manager is assigned…

Q: How can you show how efficiency ratios can be used to determine the best way to conduct the…

A: Lets understand the basics. Ratios are calculated by the management to compare the company's current…

Q: What types of data are needed to calculate a beta coefficient for anactual company?

A: Beta is a sensitivity measure that tells about the change in return on the stock due to changes in…

Q: what are the advantages of calculating a supplier performance index?

A: Supplier Performance Index: A supplier performance index is used to determine the total cost of…

Q: What is meant by the terms margin and turnover in ROI calculations?

A: ROI( Return on investment) is a performance measure used to measure the efficiency of an…

Q: disadvantage of utilizing income from operations as a performance indicator

A: Income from operations means the excess of revenues from business operations than cost of conducting…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.