A system that considers the earnings per sales dollar and the investment used to generate those sales dollars is called:
A)The economic value added system.
B)The balanced scorecard system.
C)The DuPont system.
D)The residual income system.

Question

Quizplus · Accepted Answer

The DuPont system takes into account both the earnings per sales dollar and the investment used to generate those sales dollars by breaking down the return on investment (ROI) into its components: net profit margin and asset turnover. It then multiplies these components to arrive at the ROI.

A System That Considers the Earnings Per Sales Dollar and the Investment