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.

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Definitions:

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, represented as a proportion of the principal sum.

Present Value

Today's monetary equivalent of a future amount of money or cash flow sequences, using a specified rate of return.

Discount Rate

In the realm of discounted cash flow analysis, this interest rate is used to calculate the present value of expected future cash flows.

Payments

The process of transferring money in exchange for goods or services or as fulfillment of obligations.