The Following Information Is Provided for Nguyen Company and Northwest

question 203

Multiple Choice

The following information is provided for Nguyen Company and Northwest Corporation. If Nguyen and Northwest are in the same industry and the industry average for the asset turnover ratio is equal to 1.20 times, which of the following statements is true?

• A) Nguyen is operating more efficiently than the industry.
• B) Northwest is operating more efficiently than Nguyen.
• C) Both Nguyen and Northwest are operating more efficiently than the average company in their industry.
• D) The asset turnover ratio does not address the question of efficient operations.

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Definitions:

Infant Mortality

Early failure rate of a product or system shortly after its inception or initial use.

MTBF Distribution

A statistical representation describing the expected time between failures of a mechanical or electronic system, used in reliability engineering.

Breakdown Maintenance

A maintenance strategy that involves repairing or replacing equipment and components only after they have failed.

Emergency Maintenance

Unscheduled repair work performed on equipment or systems to correct an unforeseen failure or fault.