A Decrease in Which One of the Following Will Increase

question 36

Multiple Choice

A decrease in which one of the following will increase the return on assets?

• A)long-term debt
• B)sales
• C)inventory
• D)retained earnings
• E)dividends paid

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Definitions:

Manufacturing Departments

Specialized functional areas within a manufacturing facility where specific stages of production are carried out.

Machine-Hours

A measurement of production time using the number of hours machines are operated.

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as utilities, rent for manufacturing facilities, and maintenance of equipment.

Job-Order Costing System

An accounting system that collects costs for each individual job or project separately to determine its profitability, commonly used in manufacturing or services where goods or services are produced on a bespoke basis.