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Management · Q87

Management Accounting

Graduate and Post Graduate · Management · question 87

Q87

In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as

A.
internal process component
B.
growth component
Answer
C.
price recovery component
D.
productivity component

Answer: Option B

Solution

Answer: Option B
Solution:
In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as growth component. Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).