A Measure of the Percentage of Each Dollar of Sales

question 12

Multiple Choice

A measure of the percentage of each dollar of sales that results in net income is

• A) profit margin.
• B) return on assets.
• C) return on common stockholders' equity.
• D) earnings per share.

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing a product, including indirect labor, materials, and other expenses.

Direct Labor Hours

The sum of hours dedicated by employees directly linked to producing products or offering services.

Manufacturing Costs

Manufacturing costs refer to the total expenses involved in the process of producing goods, including direct materials, direct labor, and manufacturing overhead.

Journal Entries

The method used in bookkeeping to record all the financial transactions of a business.