Operating Return on Assets (OROA)is Equal to Operating Profit Margin

question 25

True/False

Operating return on assets (OROA)is equal to operating profit margin times fixed assets turnover.

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Definitions:

C2B

Consumer-to-Business, a business model where consumers create value or products that businesses purchase.

B2B

Business-to-Business, a model that involves transactions between two firms rather than between a firm and individual consumers.

Ordering Cost

The expenses incurred in placing and receiving orders for materials or products, including paperwork, communication, and transportation costs.

Idle Workers

Employees who are not actively engaged in production or work due to lacking assignments or efficiency breakdowns.