A decrease in either capital turnover or return on sales,without changing the other,will also ________ the ________.
A) decrease; gross book value of long-term assets
B) decrease; return on investment
C) decrease; cost of capital
D) decrease: net book value of long-term assets

Question

Quizplus · Accepted Answer

A decrease in either capital turnover or return on sales, without changing the other, will decrease the return on investment (ROI). ROI is influenced by both the efficiency of asset use (capital turnover) and profitability (return on sales).

A Decrease in Either Capital Turnover or Return on Sales,without