If the Profit Margin for a Division Is 8% and the Investment

question 121

True/False

If the profit margin for a division is 8% and the investment turnover is 1.20, the rate of return on investment computed would be 6.7%.

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Definitions:

Perpetual Inventory System

An inventory system that continuously tracks inventory levels and updates them after every purchase or sale, providing a real-time view of inventory.