Which of the Following Is the Correct Formula for the Asset

question 28

Multiple Choice

Which of the following is the correct formula for the asset turnover ratio?

• A) Net sales / Average total assets
• B) Net sales / Cost of goods sold
• C) Net sales / Net assets
• D) Net profit / Net sales

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Definitions:

Costly Activities

Activities that involve a significant expenditure of resources such as time, money, or effort.

New Product

An item or service that has been recently developed or introduced to the market, offering new or improved features.

Minimum Wage Control

Regulatory measures that set the lowest hourly rate of pay that employers can legally offer their employees.

Fringe Benefits

Additional compensation provided to employees beyond their normal salaries or wages, such as health insurance, retirement plans, and paid time off.