A decrease in the operating income return on investments could be caused by an increase in:
A)tax rate.
B)cost of goods sold.
C)total assets.
D)both B and C.
E)all of the above.

Question

Quizplus · Accepted Answer

An increase in cost of goods sold or total assets would lower the operating income return on investments. This is because a higher cost of goods sold would lower the gross profit, and a higher total asset would increase the operating expenses. However, the tax rate does not directly affect the operating income return on investments.

A Decrease in the Operating Income Return on Investments Could