A. The price-earnings ratio is a financial performance measure and can be used to measure the adequacy of the budgeted annual operating income.

B. The industry average for earnings on sales is a financial performance measure and can be used to measure the adequacy of the budgeted annual operating income.

C. Earning per share represents a financial performance measure and can be used to measure the adequacy of the budgeted annual operating income.

D. The internal rate of return is used to evaluate investment decisions and involves the time value of money. IRR represents the discount rate at which the net present value of an investment is equal to zero. IRR is not used to evaluate the adequacy of budgeted operating income.