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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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar
10th International Edition
0130851779, 978-0130851772
