Operating ROA Is Calculated as __________ While ROE Is Calculated

question 24

Multiple Choice

Operating ROA is calculated as __________ while ROE is calculated as _________.

• A) EBIT/Total Assets; Net Profit/Total Assets
• B) Net Profit/Total Assets; EBIT/Total Assets
• C) EBIT/Total Assets; Net Profit/Equity
• D) Net Profit/EBIT; Sales/Total Assets

Calculate variable overhead rate variance and efficiency variances.

Calculate fixed overhead budget and volume variances.

Understand the impact of standard machine-hours and labor-hours on overhead application.

Determine whether overhead was underapplied or overapplied and quantify the amount.

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Definitions:

Kruskal-Wallis Test

A statistical test that doesn't rely on parameter assumptions to evaluate if notable differences exist between two or more independent variable groups, focusing on a continuous or ordinal dependent variable.

Distribution

The spread of values of a variable or the frequencies of occurrence of different possible outcomes in a dataset.

Sign Test Statistic

A test that does not assume a specific data distribution, employed to evaluate if paired observations have a median that differs.

Sign Test

A nonparametric statistical test used to determine if there is a median difference between paired observations.