Indicate Whether Each of the Following Statements Is True or False

question 108

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Margin is calculated by dividing operating income by net income.
_____ b) Turnover is a measure of the profits generated from sales.
_____ c) Return on investment can be improved by increasing sales, decreasing expenses, or increasing the asset base.
_____ d) An increase in sales may cause a company's return on investment to increase because of the effects of fixed costs.
_____ e) Return on investment combines many aspects of managerial performance into a single ratio.

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Definitions:

Imports

Goods or services brought into one country from another for the purpose of trade or sale.

Cournot Duopolists

A market structure in which two companies assume the other's output to be constant when determining their optimal production levels.

Total Costs

The total of all expenses involved in creating goods or services, encompassing both constant and fluctuating costs.

Daily Profit

The net financial gain or loss a business experiences on a daily basis.