1. The operating margin measures operating income per dollar of assets. *

3 points

True

False

2. For a company that manufactures washers, the cost of the wages of assembly-line workers is considered as a direct labor cost. *

3 points

True

False

3. The profitability ratios show the combined effects of liquidity, asset management, and debt management on a firm's operating results. *

3 points

True

False