Which of the Following Would NOT Decrease the Return on Equity

question 6

Multiple Choice

Which of the following would NOT decrease the return on equity ratio?

• A) An increase in company income tax
• B) Declaring a dividend
• C) Increased cost of goods sold
• D) Issue of shares

Identify and distinguish between various types of costs such as sunk costs, period costs, product costs, and opportunity costs.

Calculate total costs, including both variable and fixed components, at different levels of production or sales volume.

Understand how costs behave within the relevant range and how to apply this understanding to cost management.

Assess the impact of different cost structures on financial reporting for a business.

---

Definitions:

EOQ

Economic Order Quantity, a formula that determines the ideal order quantity that minimizes total inventory holding costs and ordering costs.

Fixed Ordering Costs

Fixed ordering costs are the expenses that do not change with the quantity of order and typically include things like delivery charges and order processing fees.

Inventory Value

The total cost or market value of all the goods and materials held by a company.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit.