The T-Shirt Hut Successfully Managed to Reduce Its General and Administrative

question 67

Multiple Choice

The T-shirt Hut successfully managed to reduce its general and administrative costs this year.This cost improvement will increase which of the following ratios?
I.Profit margin
II.Return on assets
III.Total asset turnover
IV.Return on equity

• A)I and II only
• B)I and III only
• C)II, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

Analyze the reasons behind labor efficiency variances.

Evaluate the role of effort in efficiency and its impact on variance reports.

Understand the relationship between fiscal policy actions and their impact on the budget balance, national debt, and economic outcomes.

Comprehend the concepts and significance of automatic stabilizers within the economy and their effects during various economic cycles.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percent rate.

Bank Deposits

Funds that are placed into banking institutions for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.

Loans

Money lent to individuals or entities with the expectation of repayment within a specific timeframe, usually with interest.

Default

The failure to meet the legal obligations or conditions of a loan, such as not making the scheduled payments.