The formula to calculate return on investment, according to profitability analysis in DuPont method is ____________?
Correct answer: A. return on sales * investment turnover
- A. return on sales * investment turnover
- B. return on sales + investment turnover
- C. return on sales - investment turnover
- D. investment turnover + residual incomeCompare Investment Apps
Explanation
Under the DuPont method, ROI is decomposed as return on sales multiplied by investment turnover. Adding or subtracting these components would not produce a rate of return.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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