Current Assets Divided by Current Liabilities Is Known as the

question 64

Multiple Choice

Current assets divided by current liabilities is known as the

• A)working capital.
• B)current ratio.
• C)profit margin.
• D)capital structure.

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Definitions:

Prime Costs

The combination of direct materials and direct labor costs.

Direct Labor

This term refers to the labor costs associated with workers who are directly involved in the production of goods or services.

Direct Materials

Materials directly linked to the production of a product, constituting a major part of the manufacturing expenses.

Cost of Production Report

A document that details the total cost and production quantities of a manufacturing process or department, crucial for cost management and control.