If Management Wishes to Measure How Effectively the Assets Were

question 78

Multiple Choice

If management wishes to measure how effectively the assets were used in generating a profit, they could use the:

• A) rate of return on total assets.
• B) rate of return on common stockholders' equity.
• C) return on sales.
• D) times interest earned.

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Definitions:

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product or service.

Marginal Revenue

The additional revenue that a company generates from selling one more unit of a good or service.

Moustache Wax

A grooming product used to style and hold the moustache in place.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.