The Ratio of SG&A/Revenue Is an Indicator of a Firm's

question 91

Multiple Choice

The ratio of SG&A/Revenue is an indicator of a firm's focus on

• A) researching to produce innovative products and services.
• B) marketing and sales to promote its products and services.
• C) producing a good in an efficient manner.
• D) creating a good that is cost-effective.

---

Definitions:

Supporting Assembly

Components or sub-assemblies that are used as part of a main assembly in manufacturing processes.

Activity-based Costing

A financial approach that distributes overhead and indirect charges to associated goods and services based on the activities involved.

Plantwide Overhead Rate

A single overhead allocation rate used throughout a manufacturing plant or entire facility, applied uniformly to all products or cost centers.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that generate costs.