Total Asset Turnover Is Calculated by Dividing

question 96

Multiple Choice

Total asset turnover is calculated by dividing:

• A) Gross profit by average total assets.
• B) Average total assets by gross profit.
• C) Net sales by average total assets.
• D) Average total assets by net sales.
• E) Net assets by total assets.

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Definitions:

Average Total Cost

The total cost of production divided by the total quantity of output produced.

Legal Cartel Theory

A concept where regulations permit or create conditions for the existence of cartels, which are agreements between competing firms to control prices or markets.

Public Interest Theory

Suggests that regulations are supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Price-fixing Theory

The economic analysis concerning agreements between competitors to sell a product or service at a set price, limiting competition.