During 2015, Stein Corporation Reported Net Sales of $5,000,000 and Net

question 242

Multiple Choice

During 2015, Stein Corporation reported net sales of $5,000,000 and net income of $2,100,000. Stein also reported beginning total assets of $1,000,000 and ending total assets of $1,500,000. Stein's asset turnover is

• A) 5.0 times.
• B) 4.0 times.
• C) 3.3 times.
• D) 1.7 times.

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Definitions:

Fixed Factory Overhead

The regular, consistent expenses involved in operating a factory that do not vary with production volume, including costs like rent, salaries of permanent staff, and utility bills.

Variable Costing

An accounting method that only considers variable costs in product costing and decision making, excluding any fixed costs.

Factory Supervisor

An individual responsible for overseeing the day-to-day operations within a manufacturing facility, ensuring production targets and quality standards are met.

Machine Operator

A machine operator is a person who operates equipment and machinery in manufacturing or production settings, monitoring and controlling processes.