Return on Equity and Return on Assets Are Both Classified

question 9

Multiple Choice

Return on equity and return on assets are both classified as what type of ratios?

• A)asset management ratios
• B)leverage ratios
• C)liquidity ratios
• D)profitability ratios

Understand the legal definitions and distinctions between principal, agent, and subagent.

Comprehend the ways agency relationships can be established and terminated.

Recognize the liability implications for principals regarding the acts of agents.

Identify the duties and rights between principal and agent, including fiduciary responsibilities.

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Definitions:

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services by identifying cost drivers.

Machine-Hours

Machine-Hours measure the amount of time machines are in operation during a certain period, often used for allocating machine-related expenses to products.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to the activities that incur them.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the resources consumed in the production process.