If management wishes to evaluate the ability of a business to use sales to cover the operating expenses, they could use the:

A) rate of return on total assets.
B) rate of return on common stockholders' equity.
C) gross profit rate.
D) times interest earned.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly linked to the production of goods or services.

Gross Profit Rate

A profitability ratio that indicates how well net sales cover administrative and selling expenses.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.