The Total Dollar Value Approach Is the Ratio of the Total

question 18

True/False

The total dollar value approach is the ratio of the total dollar value of proposals that the contractor won as a percentage of the total dollar value of all the proposals the contractor submitted to various customers during a specific time period.

Know the significance of a "true" zero in ratio-level measurement.

Understand the importance of measurement scales in attempting to quantify abstract concepts.

Recognize the significance of data categorization in research.

Understand the concept of post-formal thought and its characteristics.

---

Definitions:

EBIT

The financial performance metric, Earnings Before Interest and Taxes, deducts all expenses from a firm's income except for interest and tax expenses.

Return On Equity

A measure of a corporation's profitability, calculated as net income divided by shareholder's equity, indicating how effectively management is using a company’s assets to create profits.

Total Equity

The total of all stockholder's equity (both preferred and common stock) plus retained earnings within a company.

Average Collection Period

A financial metric indicating the average number of days it takes for a firm to receive payments owed by its customers.