What Provides the Framework for Conducting Return on Assets Analysis

question 13

Multiple Choice

What provides the framework for conducting return on assets analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?

• A) the Balanced Scorecard
• B) the Strategic Profit Model
• C) microfinancing
• D) Supply Chain Operations Reference Model

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Definitions:

Fixed Costs Per Unit

Fixed costs per unit decrease as production increases because the total fixed costs are spread over a larger number of units.

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.

Fixed Expenses

Costs that do not vary with the level of production or sales, remaining constant over a period of time.