Examlex

Solved

Which of the Following Traits Is Measured by the Dirty

question 277

Multiple Choice

Which of the following traits is measured by the Dirty Dozen rating scale?​

Calculate net profit margin percentage to assess profitability relative to revenue.
Understand the significance of gross margin percentage in measuring a company's financial health.
Compute return on total assets (ROA) to evaluate how efficiently a company uses its assets to generate profit.
Analyze return on equity (ROE) to understand how effectively a company uses invested capital to generate earnings.

Definitions:

Contribution Margin

The difference between a company's sales revenue and its variable costs, used to cover fixed costs and generate profit.

Variable Cost

A corporate expense that changes in proportion with production output, such as raw materials and labor costs, differing from fixed costs.

Operating Cash Flow

The cash generated from the normal operations of a business, excluding financing and investing activities.

Variable Costs

Charges that adjust in direct proportion to the amount of goods produced or sold.

Related Questions