Question
A company is evaluating performance of its four divisions. The divisions are all investment centers. The following information is given: Division Profit ROI Residual Income
A company is evaluating performance of its four divisions. The divisions are all investment centers. The following information is given:
| Division | Profit | ROI | Residual Income | Net operating assets |
| A | $720,000 | 12% | $100,000 | $6,000,000 |
| B | $200,000 | 20% | $70,000 | $1,000,000 |
| C | $630,000 | 9% | $400,000 | $7,000,000 |
| D | $25,000 | 5% | $19,000 | $500,000 |
Which division performed the best?
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
3rd Edition
0131494910, 9780131494916
