The Calculation of Total Asset Turnover Is

question 241

Multiple Choice

The calculation of total asset turnover is:

• A) Net assets multiplied by total assets.
• B) Average total assets multiplied by net sales.
• C) Gross profit divided by average total assets.
• D) Average total assets divided by gross profit.
• E) Net sales divided by average total assets.

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Definitions:

Marginal Cost

The charge incurred for the manufacturing of one more unit of a particular good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, typically decreasing as production increases.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, indicating the cost of producing one more unit of a good or service.

ATC

The average total cost is defined as the total production cost divided by the quantity of produced output.