Question
At Crusoe Limited, the head of the Northern Division is responsible for the production and selling of products in twenty states as well as securing
At Crusoe Limited, the head of the Northern Division is responsible for the production and selling of products in twenty states as well as securing the productive assets needed to create the product. This division is an example of which of the following responsibility centers?
a. | Revenue center
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b. | Investment center
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c. | Profit center
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d. | Cost center
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Berger Construction Limited has set a 15% required minimum rate of return. The companys CFO is considering investing in a $125,000 crane that is expected to generate $25,000 in additional operating income. What is the cranes residual income?
a. | $18,750
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b. | $6,250
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c. | $15,000
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d. | $4,500
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