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- Subject
- Performance Measurementaccounting-mcqs › cost-accounting-mcqs › performance-measurement
- Published
- 11 May 2023
- Last updated
- 28 May 2026
Which metric is obtained by dividing operating income by total revenues?
Multiple choice question for Performance Measurement. Select an option, then review the explanation below.
Explanation
Operating income divided by revenues yields the return on sales, which measures profitability relative to sales. Residual income, after-tax operating return, and return on investment are different financial metrics.
More Performance Measurement MCQs
Practice related questions from the same subject.
- 1.How do you determine the total assets employed using total available assets and idle assets?
- 2.What are the formal information systems within organizations called that guide the company’s learning and focus on critical strategic matters?
- 3.Which financial metric is calculated by deducting the rupee value of the required return on investment from the income?
- 4.The economic value added (EVA) approach is a particular technique used to determine which of the following?
- 5.What represents the after-tax average expense of the capital a company utilizes over the long term?