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Management · Q94

Management Accounting

Graduate and Post Graduate · Management · question 94

Q94

In operating income strategic analysis, strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as

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

Answer: Option C

Solution

Answer: Option C
Solution:
In operating income strategic analysis, strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as price recovery component. The price-recovery component measures change in output price compared with changes in input prices.