Which of the following statements is/are true?
i. A Du Pont chart includes lag indicators for revenue measures.
ii. A Du Pont chart includes lead indicators for costs.
iii. A Du Pont chart fails to show any relationship between cost and invested capital.
iv. A Du Pont chart clearly shows the relationship between lead indicators and invested capital.
A) i, ii and iii
B) ii, iii and iv
C) i, ii and iv
D) All of the given answers

Question

Quizplus · Accepted Answer

Option i is true because a Du Pont chart includes lag indicators for revenue measures such as return on sales (ROS). 
Option ii is also true because a Du Pont chart includes lead indicators for costs, such as asset turnover. 
Option iii is false because a Du Pont chart incorporates the relationship between cost and invested capital through the calculation of return on assets (ROA). 
Option iv is true to an extent, as a Du Pont chart does show the relationship between lead indicators (such as asset turnover) and invested capital, but not in a clear manner as suggested in the option.

Which of the Following Statements Is/are True