Asked by
Jordon Robinson
on Dec 17, 2024Verified
If operating income for a division is $6,000, invested assets are $25,000, and sales are $30,000, the investment turnover is 1.2.
Investment Turnover
A measure of a company's efficiency in generating sales from its assets, calculated as sales divided by the average invested assets.
Operating Income
A company's profit after subtracting operating expenses, such as wages and cost of goods sold, but before deducting interest and taxes.
- Scrutinize the calculation and implication of investment turnover in performance measurement.
Verified Answer
KS
Learning Objectives
- Scrutinize the calculation and implication of investment turnover in performance measurement.
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