In the Dupont Model for Calculating ROI, Which of the Following

question 127

Multiple Choice

In the Dupont Model for calculating ROI, which of the following components appears on both the margin side of the expression and the asset turnover side?

• A)Operating income
• B)Sales revenue
• C)Average operating assets
• D)Segment margin

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Definitions:

Direct Labor Dollars

The cost of labor that can be directly attributed to the production of goods or services.

Indirect Labor

The wages of employees who are not directly involved in producing goods but support the production process, such as maintenance staff and supervisors.

Cost of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Raw Materials

The basic, unprocessed or partially processed materials used to produce goods and finished products in manufacturing.