A manager wants to know how hard the asset base is working to produce sales. She should use:
ATotal rent expense
BTotal share count
CTotal asset turnover
DTotal wage expense
Answer & Solution
Correct answer: C. Total asset turnover
1. Assets are compared with sales.
2. It measures management's use of assets.
3. It is total asset turnover.
_Source: OpenStax Principles of Finance 2e, Chapter 6, Measures of Financial Health._
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