The return on sales is multiplied to investment turnover to calculate ___________?
Correct answer: B. return on investment
- A. residual income
- B. return on investment
- C. return on sales
- D. investment turnoverCompare Investment Apps
Explanation
The DuPont relationship decomposes ROI into return on sales multiplied by investment turnover. Profit margin measures profit per sales dollar, while turnover measures sales generated per investment dollar.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The system in an organization, which defines behavior standards and code of conduct is known as ___________?
The return on investment is also known as _____________?
If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?
The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called ____________?
If after-tax operating income is $185000, weighted average cost of capital is 11%, total assets are $485000 and total liabilities are $367000, then economic value added would be __________?
The costs that are not incorporated in accounting records, but are recognized in different situations are classified as ___________?