The Profit Margin Is the Ratio of

question 65

Multiple Choice

The profit margin is the ratio of

• A) income from operations to sales
• B) income from operations to invested assets
• C) assets to liabilities
• D) sales to invested assets

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Definitions:

Work In Process Inventory

Components, raw materials, and labor costs associated with partially completed goods during the manufacturing process.

Direct Labor

The wages paid to workers directly involved in the production of goods or services.

Overhead

The ongoing operational costs not directly attributable to the creation of a product or service.

General Journal

A comprehensive journal used in bookkeeping to record all types of accounting transactions before their transfer to specific accounts in the ledger.