An improvement in either capital turnover or return on sales, without changing the other, will also improve the _____.
A)level of sales
B)cost of capital
C)net book value
D)rate of return on invested capital

Question

Quizplus · Accepted Answer

Improving either capital turnover or return on sales will result in a higher rate of return on invested capital, as it measures the profitability of the company's investments. It will not necessarily affect the level of sales, cost of capital, or net book value.

An Improvement in Either Capital Turnover or Return on Sales