The rate of return on sales measures how effectively management has used the assets of the company.

Name: The rate of return on sales measures how effectively management has used the assets of the company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The rate of return on sales measures the efficiency of a company in generating profits from its revenue, not how effectively management has used the assets of the company. That is measured by the return on assets (ROA).

The Rate of Return on Sales Measures How Effectively Management