To calculate diluted EPS, the accountant does all of the following except: Which factor does not explain differences or changes in ROA? Which of the following are better indicated by percentage change statements than common-size statements? Which of the following industries would you expect to have, on average, high asset turnover and low profit margin? Which of the following is not a way a company can achieve a low-cost position Which of the following is the primary objective in most financial statement analysis? Which of the following might an analyst not want to eliminate from past earnings when using past earnings to forecast future earnings? Which of the following scenarios is consistent with a increasing cost of goods sold to sales percentage and increasing inventory turnover Which of the following would not be considered a committed fixed cost ( a cost that is incurred regardless of the level of activity during the period)?  

1. To calculate diluted EPS, the accountant does all of the following except:

adds back to net income any compensation expense recognized on the employee stock options

2. Which factor does not explain differences or changes in ROA?

Financial leverage (Operating leverage , Cyclicality of Sales, Product Life Cycle explain the differences)

3. Which of the following are better indicated by percentage change statements than common-size statements?

growth and decline

4. Which of the following industries would you expect to have, on average, high asset turnover and low profit margin?

Grocery stores

5. Which of the following is not a way a company can achieve a low-cost position

customer service (economies of scale, outsourcing, production efficiency are ways)

6. Which of the following is the primary objective in most financial statement analysis?

to value a firm's equity securities

7. Which of the following might an analyst not want to eliminate from past earnings when using past earnings to forecast future earnings?

revenue from the sale of inventory.

8. Which of the following scenarios is consistent with a increasing cost of goods sold to sales percentage and increasing inventory turnover

Firm shifts its product mix toward lower margin, faster moving products. Firm shifts its product mix toward lower margin, faster moving products.

9. Which of the following would not be considered a committed fixed cost ( a cost that is incurred regardless of the level of activity during the period)?

advertising expense (rent, amortization, depreciation are committed)