AACE International Certified Cost Professional (CCP) Exam CCP Question # 6 Topic 1 Discussion

AACE International Certified Cost Professional (CCP) Exam CCP Question # 6 Topic 1 Discussion

CCP Exam Topic 1 Question 6 Discussion:
Question #: 6
Topic #: 1

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

Which of the following is considered a measure of profitability?


A.

Rate of return


B.

Annual Dividends


C.

Total assets


D.

Annual sales


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