Which of the Following Usually Is an Advantage of On-

question 1

Multiple Choice

Which of the following usually is an advantage of on- site expansion, compared to building a new facility?

• A) simplified production control
• B) reduced transportation cost
• C) reduced construction time and costs
• D) focused facility

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Definitions:

Asset Turnover

A ratio that calculates how effectively a company utilizes its assets to produce sales income.

Sales Revenue

The total amount of money generated from sales of goods or services before any costs or expenses are subtracted.

Invested Capital

The total amount of money invested into a company by shareholders and debtors, used to fund the company's operations and growth.

Residual Income

Income that remains after all costs and expenses, including a charge for capital, have been deducted.