Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 23, Problem 23.2Q
To determine

Accounting-based performance measures:

Accounting-based measures can be defined as indicators constructed starting from financial statements, the profit and loss account, balance sheet, and cash flow statement.

To identify: The steps in designing accounting-based performance measures.

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A company has net sales of $12 million, a profit of $1,200,000, and a total asset turnover of 2.0 times. What is the Return on Assets (ROA)? a) 18% b) 25% c) 10% d) 20%