When Calculating Return on Common Stockholders' Equity the Financial Analyst

question 58

Short Answer

When calculating return on common stockholders' equity the financial analyst subtracts ________________________________________ from net income.
Answer:

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a selected activity base.

Direct Labor-hour

The number of labor hours spent on the direct production of goods or services.

Manufacturing Overhead

Costs incurred from the manufacturing process, which exclude both direct labor and materials, are categorized as indirect costs.

Estimated Total

An approximation of the total value, cost, or quantity of a particular item or project.