Why Are Hidden Implementation Methods Often Referred to as Existing

question 58

Essay

Why are hidden implementation methods often referred to as existing in a black box?

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Definitions:

Gross Profits

The difference between net sales and the cost of goods sold, indicating the basic profitability of the products or services sold.

Times Interest Earned Ratio

A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Return on Sales Ratio

A measure of a company's operational efficiency, calculated by dividing operating profit by net sales.

Return on Total Assets

A profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.