How Is Turnover Calculated

question 63

Multiple Choice

How is turnover calculated?

• A) operating income/sales
• B) sales/average operating assets
• C) operating income/average operating assets
• D) average operating assets/operating income

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Definitions:

Direct Labor-Hours

The total number of hours worked directly on the production of goods, used as a basis for allocating overhead costs in some accounting systems.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping to record debits on the left side and credits on the right.

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to the units produced, based on a predetermined rate.

Manufacturing Overhead

Every cost linked to production that isn't categorized as direct material or direct labor expenses.