When Examining the EBITDA Ratio,lower Numbers Are

question 52

Multiple Choice

When examining the EBITDA ratio,lower numbers are:

• A) considered good.
• B) considered mediocre.
• C) considered poor.
• D) indifferent to higher numbers.
• E) it is impossible to garner information from this ratio.

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Definitions:

Materials Requisition

The process of requesting and withdrawing materials from inventory for use in the production process or for other operational needs.

Source Document

An original record, such as an invoice or receipt, that evidences a business transaction.

Indirect Materials

Indirect materials are those materials used in the production process but are not directly traceable to specific products, such as lubricants for machinery.

Work in Process Inventory

Goods that are in the production process but have not yet been completed; represents one of the stages in manufacturing inventory.