Asset Management Ratios Do Not Measure Which of the Following

question 72

Multiple Choice

Asset management ratios do not measure which of the following:

• A)productivity of fixed assets in terms of sales
• B)how current assets are used in the generation of sales
• C)how efficiently inventory is being managedearnings generated by efficient asset management
• D)all of the above are measured by asset management ratios

---

Definitions:

Administrative Expense

Costs related to the general operation of a company, which may include salaries of executive staff, office supplies, and utility expenses not directly tied to production.

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to production activity, such as selling, administrative, and general expenses.

Marketing

The process and techniques used by organizations to promote and sell their products or services, including market research and advertising.

Administrative Expense

Expenses related to the general operation of a business, including executive salaries, marketing, and other non-production costs.