Which of the Following Changes Will Provide an Increase (If

question 109

Multiple Choice

Which of the following changes will provide an increase (if only in the short-run) in a firm's ROE?

• A)An increase in total assets
• B)An increase in the dividend-payout ratio
• C)An increase in equity
• D)The payment of a stock dividend

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Definitions:

Conversion Costs

The combination of direct labor and manufacturing overhead costs that are incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory costing method that averages the cost of inventory available for sale with the cost of goods sold to determine the cost of ending inventory and cost of goods sold.

Welding Department

A specialized segment within a manufacturing facility where welding processes are conducted, often accounted for separately in cost and production analyses.

Weighted-Average Method

The weighted-average method is an inventory costing method that assigns a weighted average cost to the inventory items based on the cost of goods available for sale and the units available.