APICS Certified Supply Chain Professional (CSCP) — Question 271
Return on investment (ROI), return on assets (ROA), and economic value added are examples of which of the following types of metrics?
Answer options
- A. Balance scorecard
- B. Liquidity
- C. Financial sustainability
- D. Productivity
Correct answer: C
Explanation
The correct answer is C, Financial sustainability, as ROI, ROA, and economic value added are all measures of profitability and efficiency that assess how well a company generates profit relative to its assets and investments. Options A (Balance scorecard) and D (Productivity) relate to broader performance metrics, while option B (Liquidity) focuses specifically on a company's ability to meet short-term obligations, which is not directly related to these profitability measures.