In case fictitious revenues are recorded asset turnover ratio will increase.
The asset turnover ratio measures the performance of an organization's assets in producing revenue or income. It compares the dollar quantity of income (revenues) to its overall belongings as an annualized percent. hence, to calculate the asset turnover ratio, divide net income or revenue by the average total belongings.
Fictitious revenues contain the sale of goods or services that no longer arise. Fictitious invoices may be fake, but can also contain valid clients. A fictitious invoice may be prepared for a legitimate patron despite the fact that goods are not added or services have no longer been rendered.
Accounting ratios, an important subset of monetary ratios, are a group of metrics used to degree the performance and profitability of an employer based on its financial reports. They provide a way of expressing the relationship between one accounting information factor to any other and are the basis of ratio evaluation.
Learn more about asset turnover ratio here brainly.com/question/13401474
#SPJ4
Answer:
a sustainable competitive advantage
Explanation:
A sustainable competitive advantage -
It refers to the practice which the company need to inculcate , in order to sustain in the upcoming global market , is referred to as a sustainable competitive advantage .
The company need to have a good reputation along with good services for each of his customer , so that everyone enjoys the service without any discrimination , and this practice help the company to grow flourish in future .
Hence , from the given scenario of the question ,
The correct term is a sustainable competitive advantage .
- Diseconomies of scale result from monthly bike sales of more than 400.
- Economies of scale = fewer than 300 bikes each month
- Monthly bike sales of between 300 and 400 bikes = Constant Returns to Scale.
<h3>What is Diseconomies of scale?</h3>
- Diseconomies of scale are the cost disadvantages that economic actors experience as a result of growing their organizational size or their output.
- Which leads to higher per-unit costs for the production of products and services.
- Economies of scale are opposed by the idea of diseconomies of scale.
<h3>What is Economies of scale ?</h3>
- The cost advantages that businesses experience as a result of their size of operation are known as economies of scale.
- And they are often quantified by the amount of output generated in a given amount of time.
- Scale can be increased when the cost per unit of output decreases.
<h3>What is Constant Returns to Scale?</h3>
- When a company's inputs, such as capital and labor, expand at the same rate as its outputs, or the value of their goods, this is known as a constant return to scale in economics.
- Returns to scale are measurements over a long time.
Learn more about Constant Returns to Scale here:
brainly.com/question/17326273
#SPJ4
Answer:
income effect
Explanation:
Income effect measures the change in quantity demanded of a good as a result of a change in real income or purchasing power.
As a result of the rise in price of the drink, real income fell and this led to a fall in the quantity demanded of the drink. This is the income effect.