The critical financial 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 linked to earnings from operations, as this indicates the revenue generated by the company after subtracting all the expenses incurred in operations. Community service activities, customer returns and complaints, number of product defects, and number of design changes all relate to other areas of the business that are not as directly related to profitability.

The Critical Financial Success Factor of Profitability Can Be Measured