Which One of the Following Will Increase Return on Investment

question 96

Multiple Choice

Which one of the following will increase return on investment?

• A)Variable costs are increased.
• B)Sales are increased.
• C)Average operating assets are increased.
• D)Fixed costs are increased.

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Definitions:

Inflationary Premium

The portion of interest rates or returns that compensates investors for the anticipated erosion of purchasing power due to inflation.

Money Rate

Often referring to the interest rates in financial markets; the cost of borrowing money.

Time Preference

The inclination of individuals to prefer goods and services in the present rather than in the future.

Time Preference

This concept describes individuals' preference for immediate benefits over future ones, influencing their decisions on saving, investing, and consumption.