What Kind of Information Does a Company's Rate of Return

question 83

Multiple Choice

What kind of information does a company's rate of return on net sales provide?

• A) What proportion of each dollar of sales revenue generates net income
• B) What proportion of each dollar of sales revenue generates gross profit
• C) The proportion of sales returns and allowances to gross sales revenue
• D) How effectively a company collects cash on credit sales

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Definitions:

Centralized Structures

Organizational designs where decision-making authority is consolidated at the top levels of management, leading to a hierarchy of control and limited autonomy lower down.

Decentralized

Refers to the distribution of decision-making powers away from a central authority, allowing for greater input and autonomy at the local or divisional levels.

Divisional Structures

An organizational framework where the entity is divided into semi-autonomous units or divisions, each responsible for a particular business function or geographic area.

Functional Specializations

The division of work into distinct areas, each with its own expertise and responsibilities, within an organization.