What Additional Information Is Needed to Find the Rate of Return

question 122

Multiple Choice

What additional information is needed to find the rate of return on investment if income from operations is known?

• A) Invested assets
• B) Residual income
• C) Direct expenses
• D) Sales

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Definitions:

Marginal Cost

The added cost resulting from the manufacture of one more unit of a product or service.

Variable Input

A factor of production whose quantity can be changed easily and flexibly by a firm in the short run to adjust output levels.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.

Marginal Product

The extra output generated from the inclusion of one additional unit of a particular input while maintaining all other inputs unchanged.