A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets.Which measurement should be examined?
A)Cost of goods sold
B)Asset turnover
C)Net profit margin
D)None of these

Question

Quizplus · Accepted Answer

Reducing manufacturing expenses directly impacts the cost of goods sold (COGS), which in turn affects the firm's profitability and thus its return on assets. COGS is a direct expense related to the production of the goods a company sells, so lowering these expenses can improve the company's overall financial performance.

A Vice President of Operations Wants to Evaluate the Impact