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When Calculating Return on Total Equity, It Is Normal to Add

question 69

True/False

When calculating return on total equity, it is normal to add back preferred dividends to net income.


Definitions:

Cost System

A method for accumulating and allocating costs to products or services.

Direct Materials

Raw materials directly used in the manufacture of a product and can be easily traced to the finished product.

Variances

Differences between planned or expected financial performance and the actual outcome.

Kilos

A kilo or kilogram is a metric unit of mass equal to 1000 grams, used worldwide for measuring weight.

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