17 Finis: A highly automated plant would generally have A) more variable than fixed costs. B) more fixed than variable costs. C) all fixed costs, D) all variable costs. Select one: B D When using the economic order quantity model A) ordering costs increase as the level of inventory increases. B) carrying costs decrease as the level of inventory increases. C) costs are minimized when total carrying costs and total ordering costs are equal. D) none of the above Select one: B D A quick ratio much smaller than the current ratio reflects A) a small portion of current assets is in inventory B) a large portion of current assets is in inventory C) that the firm will have a high inventory turnover. D) that the firm will have a high return on assets. 16 Select one Which of the following is true about the concept of leverage? A) at the breakeven point, operating leverage is equal to zero. B) combined leverage measures the impact of operating and financial leverage on EBIT. C) financial leverage measures the impact of fixed costs on earnings. D) none of the above Select one: 1 2 3 Companies that are mostly influenced by seasonal sales have to make a choice between A) level production and inventory buildup. B) seasonal production and an uneven workforce. C) a stable workforce and a fluctuating workforce. D) All of the above Select one: B 5 ed For a given level of profitability as measured by profit margin, the firm's return on equity will tot A) increase as its debt-to-assets ratio decreases. question B) decrease as its current ratio increases. C) increase as its debt-to assets ratio increases D) decrease as its times-interest-earned ratio decreases. Select one: B . C D Which of the following questions does break-even analysis attempt to address? A) How much do changes in volume effect costs and profits? B) At what point does the firm break even? C) What is the most efficient level of fixed assets to employ? D) All of the above Select one: B Which two ratios are used in the DuPont system to create return on assets? A) Return on assets and asset turnover B) Profit margin and asset turnover C) Return on total capital and the profit margin D) Inventory turnover and return on fixed assets Select one: A B 19 saved out of Characteristics of a money market mutual fund include A) the purchase of shares by investors, the proceeds of which are reinvested into liquid short-term securities. B) a required minimum balance of $2,500. C) the ability to be readily marketable, D) none of the above. ag question Select one: A A short-term creditor would be most interested in A) profitability ratios. B) asset utilization ratios. C) liquidity ratios. D) debt utilization ratios. Select one: B D