The Rate of Return on Net Sales Is Calculated As

question 82

Multiple Choice

The rate of return on net sales is calculated as:

• A)net income divided by net sales.
• B)operating income divided by net sales.
• C)dividends paid during the year divided by net sales.
• D)gross profit divided by net sales.

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Definitions:

Direct Labor Variances

The differences between the actual labor costs incurred and the standard labor costs for the actual production achieved.

Direct Labor Costs

The wages paid to employees who are directly involved in the production of goods or services, such as assembly line workers or craftsmen.

Standard Costs

Predetermined or estimated costs to perform an operation or produce a good, used as benchmarks against actual costs.

Direct Labor

Direct labor relates to the work of employees who are directly involved in the production of goods or services.