Return on Total Assets Measures a Company's Ability To

question 113

Multiple Choice

Return on total assets measures a company's ability to:

• A)Produce net income from net sales.
• B)Produce sales from net assets.
• C)Produce net income from net assets.
• D)Increase its asset base from sales.
• E)Increase its asset base from net income.

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Definitions:

Percentage of Sales Budgeting

A method of budgeting marketing expenditures based on a fixed percentage of past or forecasted sales.

Competitive Parity

A strategy in which a company sets its level of marketing expenditures to match its competitors, preventing any one competitor from gaining an advantage in the market.

Objective and Task

A method of setting marketing or advertising budgets based on defining specific objectives and estimating the cost of tasks required to achieve them.

All-You-Can-Afford

A marketing or pricing strategy in which the price of a product or service is determined by the customer's ability to pay, often used in non-profit or donation-based scenarios.