The best indication of the operational efficiency of management is
A) net income.
B) earnings per share.
C) earnings before interest and taxes (EBIT).
D) gross profit.

Question

Quizplus · Accepted Answer

EBIT (Earnings Before Interest and Taxes) is the best indicator of the operational efficiency of management because it focuses on the core operations of the business by excluding the effects of interest and taxes, which are not directly controlled by management's operational decisions.

The Best Indication of the Operational Efficiency of Management Is