The Return on Assets Effect ROA) Quantifies and Measures

question 7

Multiple Choice

The return on assets effect ROA) quantifies and measures:

• A) the indirect contribution of supply management to profitability.
• B) any increase in sales that occurs at a greater rate than the cost of assets.
• C) the impact of supply actions on inventory and the balance sheet.
• D) reductions in the allocations to the operating budget of the supply department.
• E) the effect on profitability of reduced spend compared to a sales increase.

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Definitions:

Factorial Design

A type of experimental design that allows researchers to examine the effects of two or more variables simultaneously by changing them together instead of independently.

Independent Variables

Factors deliberately manipulated by researchers to investigate their effect on dependent variables.

Dependent Variable

In research, it is the variable being tested and measured for change, to see how it responds to variations in the independent variable.

Systematic Variance

The portion of variation in an outcome that can be consistently explained by variables or factors in a study.