Regarding the Profit Margin Ratio,which of the Following Statements Is

question 23

Multiple Choice

Regarding the profit margin ratio,which of the following statements is incorrect?

• A) The higher the profit margin ratio, the more sales dollars end up as profit.
• B) The profit margin ratio is computed by dividing net sales by net income.
• C) The profit margin ratio shows how much net income a business earns on every $1.00 of sales.
• D) The profit margin ratio focuses on the profitability of a company and is often reported in the business press.

Appreciate the benefits of total person development for both employees and organizations.

Understand the influence of family and organizational culture on work behavior.

Acknowledge the significance of group membership, interpersonal skills, and trust in professional settings.

Discuss the concepts of organizational culture and its uniqueness.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, calculated at the beginning of a period.

Machine-Hours

The total hours that production machinery is operated within a given period, rephrased as the aggregate operational time of production equipment.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.

Manufacturing Overhead

Manufacturing overhead encompasses all of the indirect costs associated with the production of goods, such as utilities, maintenance, and the salaries of management.