A Firm's Profit Objective Is Often Measured in Terms of ROA

question 84

Multiple Choice

A firm's profit objective is often measured in terms of ROA. The acronym ROA stands for

• A)return on assets.
• B)risk opportunity assessment.
• C)return of allowances.
• D)return on average equity.
• E)risk opportunity analysis.

Understand pay adjustments such as pay differentials, and their reasons and applications.

Comprehend the components and significance of pay policy lines in compensation management.

Describe job structure, pay level, and pay structure, and understand their interrelations.

Explain the concept of benchmarking and its role in setting competitive pay structures.

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Definitions:

Service Department Charges

Costs allocated to the various service departments within an organization, such as IT or HR, which support the production departments.

Income from Operations

The earnings of a business from its core operations, excluding revenue and expenses from non-operational activities like investment gains or losses.

Indirect Expense

Costs not directly linked to the production of goods or services, such as administrative expenses.

Insurance on Merchandise Inventory

A protection coverage for businesses against loss or damage to their stock of goods.