Assuming That Sales and Average Operating Assets Remain the Same,a

question 10

Multiple Choice

Assuming that sales and average operating assets remain the same,a company's return on investment will:

• A) increase if net operating income increases.
• B) decrease if net operating income decreases.
• C) increase if margin decreases.
• D) decrease if margin increases.

---

Definitions:

Production Costs

The total expenses incurred in manufacturing a product, including raw materials, labor, and overhead costs.

Disbursements Section

Part of financial statements or reports that details the outflow of cash or cash equivalents, often within the context of operating, investing, and financing activities.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow effectively.

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.