Question

What does it mean when performance improves and expenses are well controlled?

1) It indicates efficient management
2) It indicates poor management
3) It indicates no impact on management
4) It indicates uncertain management

Answer 1

When performance improves and expenses are well controlled, it typically indicates efficient management.

Step-by-step explanation:

When performance improves and expenses are well controlled, it typically indicates efficient management. Efficient management refers to the ability to achieve desired results while effectively utilizing resources, such as controlling expenses and improving performance. For example, if a company is able to increase its sales revenue while keeping costs low, it shows that the management team is making effective decisions and optimizing operations. This can lead to profitability and sustainability for the business.