Which One of These Identifies the Relationship Between the Return

question 6

Multiple Choice

Which one of these identifies the relationship between the return on assets and the return on equity?

• A) Profit margin
• B) Profitability determinant
• C) Balance sheet multiplier
• D) DuPont identity
• E) Debt-equity ratio

---

Definitions:

Unit Costs

The total expense incurred to produce, store, and sell one unit of a product or service.

Variable Costing

An accounting approach that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overheads.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Inventory Units

The individual items or products that are available for sale, in production, or in stock as part of a company's inventory.