Roy Just Accepted a Job as a Supervisor at a Small

question 189

Multiple Choice

Roy just accepted a job as a supervisor at a small manufacturing plant.His pay starts at $635 per week.Roy is paid on a(n) :

• A)commission plan.
• B)income averaging plan.
• C)salary system.
• D)rolling rate system.

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Definitions:

Fixed Asset Turnover

A financial ratio that measures how efficiently a company uses its fixed assets to generate sales.

Du Pont Identity

A financial formula that breaks down return on equity into three component parts: profit margin, asset turnover, and financial leverage.

Return on Equity

A profitability ratio that highlights the level of profit a company achieves with the capital invested by shareholders.

Financial Statements

Comprehensive reports created to communicate an organization's financial performance, financial position, and cash flows over a specific period.