Differential Costs Can

question 298

Multiple Choice

Differential costs can:

• A) only be fixed costs.
• B) only be variable costs.
• C) be either fixed or variable.
• D) be sunk costs.

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Definitions:

Return On Equity

Return on equity (ROE) measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its total income.

Shares Outstanding

The total number of shares of stock that have been issued by a company and are held by investors, including both public investors and company insiders.