Which of the following KPIs are used to evaluate how efficiently a business unit uses assets?
A) Sales revenue growth
B) Percentage of market share
C) Residual income
D) Production efficiency

Question

Quizplus · Accepted Answer

Residual income is a KPI used to evaluate how efficiently a business unit uses assets. Residual income measures the profit generated by a business unit after accounting for the cost of capital. By using residual income, you can determine whether a business unit is generating enough profits to cover the cost of capital and create value for the organization. Sales revenue growth and percentage of market share are KPIs used to evaluate a business unit's market position, while production efficiency measures the productivity of a business unit's operations.

Which of the Following KPIs Are Used to Evaluate How