If a Firm Decreases Its Operating Costs,all Else Constant,then

question 74

Multiple Choice

If a firm decreases its operating costs,all else constant,then

• A)the profit margin increases while the cash coverage ratio decreases.
• B)the return on assets increases while the return on equity decreases.
• C)both the return on assets and the return on equity increase.
• D)both the profit margin and the equity multiplier increase.
• E)the total asset turnover rate decreases while the profit margin increases.

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Definitions:

Number Of Phases

A term referring to the distinct stages or steps in a process or project lifecycle.

Queue Performance

The measurement of effectiveness and efficiency in managing wait lines or queues, including aspects such as wait times and customer satisfaction.

Utilization Factor

A measure of how much of a system's capacity is being used compared to its total capacity.

Average Queue Length

The average number of items or people waiting in line to be processed or served over a specific period.