Why Would a Company Calculate Its Operating Margin

question 99

Multiple Choice

Why would a company calculate its operating margin?

• A)to evaluate how well resources are being used to generate profits
• B)to determine how efficiently it is using resources to make and sell products
• C)to assess if it has the resources to meet the claims of short-term creditors
• D)to evaluate how efficiently managers are turning inventory over
• E)to monitor if managers are collecting revenue from customers

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Definitions:

Moral Reasoning

The process of determining the right or ethical way to act through the evaluation of complex moral issues and values.

Moral Content

The ethical significance or implications contained within an action, decision, or piece of content.

Metaethics

A branch of ethics that examines the nature, foundations, and meanings of ethical principles, rather than discussing what actions are right or wrong.

Applied Ethics

A branch of ethics that deals with the practical application of moral considerations to real-world situations and issues.