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

Identify the roles of different brain lobes (frontal, occipital, parietal, temporal).

Distinguish between the central nervous system's major divisions.

Recognize the significance of the somatosensory and motor cortex locations.

Describe the functions of the brain parts involved in involuntary bodily processes.

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Definitions:

Straight-Line Method

A depreciation method in which an asset's cost is evenly spread over its useful life, resulting in equal depreciation charges each period.

Salvage Value

The estimated amount that an asset is worth at the end of its useful life.

Depreciation Expense

The monetary amount representing the reduction in the value of an asset over a specified period due to wear and tear or obsolescence.

Adjusting Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.