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

question 298

Multiple Choice

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

Comprehend the relationship between sales, fixed costs, variable costs, and their impact on pretax income.

Calculate the break-even point in both units and sales dollars.

Utilize various methods (e.g., least-squares regression, high-low method) to estimate cost behavior and understand their applications.

Assess the impact of changes in fixed costs, variable costs, and selling price on the break-even point and contribution margin.

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Definitions:

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Base Rate Fallacy

The tendency to ignore or underestimate statistical generalizations or probabilities in the evaluation of risks or likelihoods, often focusing on specific examples or narratives instead.

Diagnostic Psychiatric Label

A term used in psychiatry to describe a classification given to a specific pattern of behaviors or psychological symptoms.

Stigmatized

Describes individuals, groups, or conditions that are negatively stereotyped and socially marginalized.