The Profitability Ratio That Measures an Entity's Ability to Generate

question 4

Multiple Choice

The profitability ratio that measures an entity's ability to generate a profit from its asset investments is:

• A) profit margin.
• B) return on equity.
• C) gross profit margin.
• D) return on assets.

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Definitions:

Fill Orders

The process of preparing and delivering products or services as per customer requests or purchase orders.

Manufacturing Cycle Efficiency

A performance metric that measures the proportion of value-added time to the total lead time within the manufacturing process.

Fill Orders

This term denotes the process of processing, packaging, and shipping orders to customers.

Manufacturing Cycle Efficiency

A measure of the efficiency within the manufacturing process, reflecting the proportion of value-added time to total cycle time.