For the return on assets pricing method,desired earnings are computed by dividing asset costs by projected units to be produced and then multiplying by the desired rate of return on assets.

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Quizplus · Accepted Answer

This is correct. The return on assets pricing method takes into account the cost of assets and the desired rate of return on those assets in order to calculate the desired earnings. This is done by dividing the asset costs by projected units to be produced and then multiplying by the desired rate of return on assets.

For the Return on Assets Pricing Method,desired Earnings Are Computed