From the list below,the best financial performance measure for a profit centre would be:
A) cash inflows less cash outflows.
B) budgeted income less actual income.
C) budgeted costs less actual costs.
D) economic value added.

Question

Quizplus · Accepted Answer

Cash inflows less cash outflows is the best financial performance measure for a profit centre because it measures the centre's ability to generate cash, which is essential for its survival and growth.

From the List Below,the Best Financial Performance Measure for a Profit