Which of the Following Will Not Result in an Increase

question 105

Multiple Choice

Which of the following will not result in an increase in return on investment (ROI) , assuming other factors remain the same?

• A) A reduction in expenses.
• B) An increase in net operating income.
• C) An increase in operating assets.
• D) An increase in sales.

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Definitions:

Machine-Hours

The total number of hours that machinery is operating during a certain period, often used as a basis for allocating manufacturing overhead.

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, such as utilities and salaries for management.

Direct Labor-Hours

The total number of hours worked directly on the production of goods, used as a basis for allocating overhead costs in some accounting systems.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping to record debits on the left side and credits on the right.