Which of the Following Would Increase the Net Profit Margin

question 103

Multiple Choice

Which of the following would increase the net profit margin in the current year?

• A)Postpone routine maintenance work that was to be done this year.
• B)Increase the amount of research and development in the last month of the year.
• C)Postpone the purchase of supplies to the first month of the following year.
• D)Postpone dividends to stockholders.

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Definitions:

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and equipment.

Dividend Payout

The portion of net income paid to shareholders as dividends, usually expressed as a percentage.

Full Capacity

The maximum level of output that a business can sustain over a period of time, utilizing all available resources efficiently.

Financial Planning

The process of constructing a financial strategy or plan to meet an individual's or organization's long-term financial goals.