Cima C02 Exam Question No 31

Question No 31:

Which ONE of the following formulae correctly expresses the relationship between the return on capital employed (ROCE), net profit margin (NPM) and asset turnover (AT)?

A. ROCE = NPM ÷ AT
B. ROCE = NPM + AT
C. ROCE = NPM x AT
D. ROCE = NPM – AT

Answer: A