The financial critical success factor of profitability can be measured by:
A)Community service activities.
B)Customer returns and complaints.
C)Number of product defects.
D)Number of design changes.
E)Earnings from operations.

Question

Quizplus · Accepted Answer

Profitability is directly related to earnings from operations, which measures the amount of revenue remaining after deducting expenses. Therefore, the best choice is E) earnings from operations. The other options, such as community service activities, customer returns and complaints, number of product defects, and number of design changes, may indirectly impact profitability, but they do not directly measure it.

The Financial Critical Success Factor of Profitability Can Be Measured