Examlex
Indicate whether each of the following statements is true or false.
Margin is calculated by dividing operating income by net income.______
Turnover is a measure of the profits generated from sales.______
Return on investment can be improved by increasing sales,decreasing expenses,or decreasing the asset base.______
If return on investment increases when sales increase,that change usually is due at least in part to the effect of fixed costs (operating leverage).______
Return on investment blends many aspects of managerial performance into a single ratio.______
Contribution Margin
The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.
Operating Data
Operating data consists of the information related to the day-to-day operations of a company, helping in the management and optimization of its business processes.
ROI
Return on Investment, a financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.
Controllable Margin
The net operating income after variable costs are subtracted, highlighting what management can influence directly.
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