Which One of the Following Accurately Describes the Three Parts

question 56

Multiple Choice

Which one of the following accurately describes the three parts of the Du Pont identity?

• A)operating efficiency, equity multiplier, and profitability ratio
• B)financial leverage, operating efficiency, and profitability ratio
• C)equity multiplier, profit margin, and total asset turnover
• D)debt-equity ratio, capital intensity ratio, and profit margin
• E)return on assets, profit margin, and equity multiplier

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Definitions:

Equivalent Units

A method used in process costing that converts partially completed goods into a number of completed units of output.

Assembly Department

An area in a manufacturing plant where parts are put together to create finished goods.

Conversion Costs

These are the costs required to convert raw materials into finished products, comprising labor and overhead expenses.

Materials Costs

Expenses incurred for materials that are directly associated with manufacturing a product.