Which of the following is a product of using the DuPont model?
A) This enables the procurement manager to demonstrate the sensitivity of the company's financial results to procurement savings.
B) A sectoral focus on project and process based activities.
C) A more commercial orientation.
D) Efficiency gains.

Question

Which of the following is a product of using the DuPont model? 
A) This enables the procurement manager to demonstrate the sensitivity of the company's financial results to procurement savings. 
B) A sectoral focus on project and process based activities. 
C) A more commercial orientation. 
D) Efficiency gains.

Quizplus · Accepted Answer

The DuPont model is a financial analysis framework that breaks down a company's return on equity into three components: profitability, asset efficiency, and financial leverage. It helps in understanding how different areas of the business contribute to the company's financial performance. Option A is correct because the DuPont model can indeed be used to demonstrate how procurement savings can impact the company's financial results, by showing how cost savings can improve profitability, which is a key component of the model.

Which of the Following Is a Product of Using the DuPont