Suppose That Output Is Worth $400, and Labor and Materials

question 23

Multiple Choice

Suppose that output is worth $400, and labor and materials costs are $200 and $100, respectively. What is the materials productivity?

• A) 2.00
• B) 1.33
• C) 0.25
• D) 0.75
• E) 4.00

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Definitions:

Dividend Paid

Cash payment distributed to shareholders out of a company’s earnings, reflecting a return on the investment made in the company's equity.

Repurchase Outstanding

A corporate finance strategy where a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Current Ratio

A ratio that determines a company's capacity to fulfill immediate financial commitments using its present assets.

Total Debt Ratio

A financial metric that compares the total debt of a company to its total assets, indicating the leverage and financial risk of the company.