Question
If a company reduced costs by 20% without affecting revenue or assets, how would the following change? Profit Margin Asset Turnover ROI Residual Income EVA
If a company reduced costs by 20% without affecting revenue or assets, how would the following change?
|
|
Profit Margin |
Asset Turnover | ROI |
Residual Income |
EVA |
| a. | No change | Increase | Increase | Increase | Increase |
| b. | Increase | No Change | Increase | Increase | Increase |
| c. | Decrease | Increase | Increase | No change | Increase |
| d. | Increase | Decrease | Increase | Increase | No Change |
| e. | Increase | Increase | Increase | Increase | No Change |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
