A Total Asset Turnover Measure of 1

question 85

Multiple Choice

A total asset turnover measure of 1.03 means that a firm has $1.03 in:

• A) Total assets for every $1 in cash.
• B) Total assets for every $1 in total debt.
• C) Total assets for every $1 in equity.
• D) Sales for every $1 in total assets.
• E) Long-term assets for every $1 in short-term assets.

---

Definitions:

Throughput Accounting

An accounting method that focuses on the rate at which a company generates money through sales, rather than on traditional production costs.

Short-term Focus

Concentration on immediate goals or results, often at the expense of long-term objectives.

Activity-based Management

An approach to business management focusing on identifying and managing activities that drive costs and improve business processes and profitability.

Process Costing

An accounting methodology used to allocate costs to units of production in continuous or mass production processes.