Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 23 - Performance Measurement, Compensation, and Multinational Considerations - Assignment Material - Questions - Page 899: 23-3

Answer

The DuPont method of profitability analysis focuses on factors affecting ROI, highlighting that an increase in ROI is driven by actions that improve return on sales or investment turnover. This includes factors like revenue increases, cost reductions, and decreased investments, provided the other variables remain constant.

Work Step by Step

The DuPont method of profitability analysis focuses on factors affecting ROI, highlighting that an increase in ROI is driven by actions that improve return on sales or investment turnover. This includes factors like revenue increases, cost reductions, and decreased investments, provided the other variables remain constant.
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