Which of the Following Is Not Used to Avoid Costly

question 18

Multiple Choice

Which of the following is not used to avoid costly shutdowns in product layouts?

• A) Preventive maintenance
• B) Inventories of spare parts
• C) Having repair personnel available
• D) Having idle stand-by plants activated during shutdowns
• E) All of the choices are used

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

P/E Ratio

The price-to-earnings ratio, a valuation measure comparing the current share price of a company to its per-share earnings.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's utilization of its assets to generate sales or revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.