This Ratio Measures the Number of Dollars of Operating Earnings

question 58

Multiple Choice

This ratio measures the number of dollars of operating earnings available to meet the firm's interest dollars and other fixed charges.

• A) Times interest earned
• B) Basic earning power
• C) Fixed charge coverage ratio
• D) ROA

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Definitions:

Contract Manufacturers

Companies that produce goods under contract for other companies, under the branding of the latter, often as a cost-saving measure.

Mass Customization

Mass customization is a strategy that combines the efficiency of mass production with the flexibility of individual customization, allowing for personalized products at scale.

Work-study Grant

A form of financial aid awarded to students based on need, allowing them to work part-time jobs while attending school to help fund their education.

Health Fees

Charges or costs associated with medical services, treatments, or health-related activities.