Which of the Following Is the Correct Formula for Calculating

question 118

Multiple Choice

Which of the following is the correct formula for calculating return on investment?

• A) Net profit / Sales
• B) Gross profit / Sales
• C) Operating income / Average total assets
• D) Earnings available to stockholders / Number of outstanding shares of stock

Identify strategies for effective marketing communication and promotion.

Understand the concept of target markets and how organizations direct their marketing program towards specific groups.

Identify the four components of the marketing mix (product, price, promotion, and place) and their role in solving marketing problems.

Recognize the importance of satisfying consumer needs through effective marketing strategies.

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Definitions:

Equivalent Units

A concept used in cost accounting to standardize units of production, making them comparable despite being in different stages of completion.

Fabricating Department

A section within a manufacturing company where raw materials are assembled or processed into finished products.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all items available for sale during the period.

Equivalent Unit

A concept in cost accounting used to allocate costs to partially completed goods, equating them to an amount of finished goods.