The DuPont Model for Calculating ROI Contains Which of the Following

question 59

Multiple Choice

The DuPont model for calculating ROI contains which of the following components?

• A)Asset turnover
• B)Internal rate of return
• C)Both asset turnover and internal rate of return.
• D)Neither asset turnover nor internal rate of return.

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Definitions:

Cost Of Inventory

The total cost incurred to acquire, produce, and place inventory items available for sale, including purchase price, shipping, handling, and storage.

Cost Of Goods Sold

An expense representing the total cost of materials and labor required to produce goods that have been sold in a given period.

Inventory

Assets in the form of materials, work-in-progress, or finished goods held by a company to be sold in the ordinary course of business.

Perpetual Inventory System

An inventory management approach where updates to inventory records are made immediately following each transaction.