Asked by Savannah Pulliam on May 25, 2024
Verified
The only way a company can increase its operating profits per asset dollar is to expand the amount of sales generated from each asset dollar.
Operating Profits
Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.
- Acknowledge the value of evaluating operating profits, margin of profit, and the factors contributing to these financial metrics.
Verified Answer
RS
Rylie SkahillMay 30, 2024
Final Answer :
False
Explanation :
A company can also increase its operating profits per asset dollar by reducing costs or improving operational efficiency, not just by increasing sales per asset dollar.
Learning Objectives
- Acknowledge the value of evaluating operating profits, margin of profit, and the factors contributing to these financial metrics.
Related questions
Profit Margin Can Be Decomposed into Its Individual Factors Including ...
Operating and Administrative Efficiencies That Result in Lower Expenses Per ...
The Profit Margin for Chicks Is
The Ratio of Income from Operations to Sales, Which Is ...
The Southern Division of Knucklehead Company Has a Return on ...