A Firm Has an Asset Turnover of 3 Times and a Net

question 18

Multiple Choice

A firm has an asset turnover of 3 times and a net profit margin of 4%.In the next year its margin decreases to 2%.This is not necessarily bad if

• A)asset turnover increases to at least 6 times
• B)asset turnover decreases to 1.5 times
• C)asset turnover doesn't change
• D)gross margin increases enough to offset the decrease in net profit margin

Calculate the center of gravity for given locations to determine optimal facility placement.

Recognize the competitive advantages provided by strategic location decisions.

Discern the various location analysis techniques used by service organizations.

Understand how production and transportation costs influence location decisions.

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Definitions:

Direct Labour Costs

Expenses related to employees who are directly involved in the production of goods or services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs.

Direct Materials

These are raw materials that are directly traceable to the manufacturing of a product.

Direct Labour-Hours

The sum of working hours for employees actively participating in the manufacturing procedure.