Use the Following Information for ECE Incorporated

question 95

Multiple Choice

Use the following information for ECE incorporated:

-ECE's Return on Assets (ROA) is:

• A)5.0%.
• B)8.5%.
• C)7.5%.
• D)15.0%.

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Definitions:

FIFO

short for "First In, First Out," is an inventory valuation method where goods purchased or produced first are sold or used first.

Average Cost Formula

A method used in accounting to determine the cost of goods sold and ending inventory by calculating the average cost of all similar items in inventory.

Ending Inventory Valuation

The valuation of goods remaining unsold at the end of an accounting period.

Average Cost Formula

A method used for inventory valuation, determining the cost of goods sold and ending inventory by calculating the weighted average of all purchases and manufacturing costs.