What Are the Two Components of Realized Return from a Stock

question 25

Essay

What are the two components of realized return from a stock investment?

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Definitions:

Sales

Income earned from the sale of products or services over a defined time frame.

Direct Method

A cost allocation technique used in cost accounting that assigns all service department costs directly to producing departments without considering any services rendered between service departments.

Accounts Receivable

Debts to a company from its customers for products or services already delivered, yet payment is pending.

Administrative Expenses

Costs related to the general operation of a company, such as salaries of executives and office supplies.