Net Income Is Used in the Numerator of the Return

question 93

True/False

Net income is used in the numerator of the return on investment formula.

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Definitions:

Materials

refers to the raw items and components required in the production of goods, ranging from metals and plastics to textiles and electronics.

Assembly Department

A section in a manufacturing plant where parts are put together to create complete goods.

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages out all costs of goods available for sale during the period.

Manufacturing Activity

A set of processes involved in transforming raw materials into finished products.