To evaluate the performance of an investment center, a business needs KPIs that measure:
A) manufacturing productivity and product defect rate.
B) operating income and the efficient use of assets.
C) customer satisfaction and market share.
D) generation of sales revenues and control of operating expenses.

Question

Quizplus · Accepted Answer

The question is asking for Key Performance Indicators (KPIs) to evaluate the performance of an investment center. An investment center is a business unit that is responsible for generating income and managing expenses. Option B is the best choice because operating income and the efficient use of assets are KPIs that are directly related to the performance of an investment center. Options A, C, and D are not necessarily irrelevant, but they are less directly related to the performance of an investment center.

To Evaluate the Performance of an Investment Center, a Business