The asset turnover ratio equals
A) revenues divided by average total assets.
B) average total assets divided by net income.
C) average total assets divided by total liabilities.
D) net income divided by average total assets.
A
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All variances should be closed to raw materials, work-in-process, and finished goods inventory
Indicate whether the statement is true or false
A supplier has offered to sell the component to Carver for $640 per unit. If Carver buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $20,000 annually. Assuming that Carver needs 3000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if Carver outsources?
Carver Company manufactures a component used in the production of one of its main products. The following cost information is available:
A) Operating income would decrease by $100,000.
B) Operating income would increase by $20,000.
C) Operating income would decrease by $20,000.
D) Operating income would increase by $120,000.
Less empowered managers are more likely to empower their subordinates than managers who are more empowered.
Answer the following statement true (T) or false (F)
A decline in the availability of tungsten will slow production of light filaments, which will in turn reduce the demand for light bulbs. This is an example of fluctuating demand.
Answer the following statement true (T) or false (F)