The Operating Return on Total Assets Is Equal to the ________

question 122

Multiple Choice

The operating return on total assets is equal to the ________ times the ________.

• A)operating return on sales; price-earnings ratio
• B)operating return on assets; dividend payout ratio
• C)operating return on sales; total asset turnover
• D)return on equity; debt-to-equity ratio

Identify different methods for estimating cost behavior, including the high-low method and least-squares regression method.

Compute and understand the significance of the total contribution margin, contribution margin ratio, and margin of safety.

Apply the concept of break-even analysis for both units and dollars, and its implications for business planning.

Use the degree of operating leverage to assess the impact of sales volume changes on profit.

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Definitions:

United States Congress

The bicameral legislative body of the federal government of the United States, consisting of the Senate and the House of Representatives.

Create

To bring something into existence or cause it to be made, often referring to innovation, construction, or design processes.

Dissolve

The formal closing or termination of an entity, such as a corporation or partnership, often involving the distribution of assets to claimants.

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.