Return on Investment Can Be Divided into Two Separate Components

question 76

Multiple Choice

Return on investment can be divided into two separate components

• A) margin and profit.
• B) margin and turnover.
• C) value and turnover.
• D) liquidity and margin.

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Definitions:

Overhead Rate

A calculated rate used to allocate overhead costs to products or services, usually determined by dividing total overhead costs by an allocation base.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated based on the estimated costs and activity levels before the period begins.

Job-Order Costing

An accounting system used to assign costs to specific jobs or batches, ideal for manufacturing or service environments where each job is distinct.

Machine-Hours

The number of hours that machines are operated in the production process during a specific period.