The Function Described as the Profit Margin Times the Total

question 97

Multiple Choice

The function described as the profit margin times the total asset turnover times the equity multiplier is known as the:

• A) Du Pont identity.
• B) Return on assets.
• C) Statement of cash flows.
• D) Asset turnover ratio.
• E) Interval measure.

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Definitions:

Slope of the Variable Cost

Represents the rate at which variable cost changes in relation to a change in output or activity level.

Scatter Diagram

A graphical representation used in statistics to show the relationship between two variables, displaying points at which a variable occurs.

Change in Units

The difference in the number of units, items, or parts between two periods, often used in inventory, production, or sales analysis.

Break-Even Point

The level of production or sales at which total costs equal total revenues, leading to no net loss or gain.