_____ Measure How Effectively an Organization Uses Its Resources to Generate

question 125

Multiple Choice

_____ measure how effectively an organization uses its resources to generate net income.

• A) Asset management ratios
• B) Capital budgeting ratios
• C) Leverage ratios
• D) Profitability ratios

---

Definitions:

Equivalent Units

A concept in cost accounting used to calculate the work done on partially completed goods, expressed in terms of fully completed units.

Cost Reconciliation Report

A document used to reconcile and verify the costs incurred by a department or project against the budgeted or expected costs.

Work In Process Inventory

Inventory that represents partially completed goods which are still in the production process.

Added To Production

Refers to the materials, labor, or overhead costs that are incorporated into the manufacturing process to produce goods.