Which of the Following Is the Correct Mathematical Expression to Derive

question 33

Multiple Choice

Which of the following is the correct mathematical expression to derive a company's capital turnover?

• A)Sales revenue / invested capital.
• B)Contribution margin / invested capital.
• C)Income / invested capital.
• D)Invested capital / sales revenue.
• E)Invested capital / incomE.

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Definitions:

Absorption Cost Approach

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a unit of product.

Manufacturing Costs

Expenses directly related to the production of goods, such as raw materials, labor, and factory overhead.

Direct Labor

The labor costs of workers who are directly involved in the production of goods or the provision of services.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in the net profit or loss.