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Calculate RI for each division ( Residual Income ) a b c sales 2,500,000 1,200,000 1,400,000 Average operating assets 300,000 500,000 1,000,000 net operating income
- Calculate RI for each division ( Residual Income )
| a | b | c | |
| sales | 2,500,000 | 1,200,000 | 1,400,000 |
| Average operating assets | 300,000 | 500,000 | 1,000,000 |
| net operating income | 100,000 | 42,000 | 40,000 |
| minimum required rate of return | 14% | 10% | 12% |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren
3rd Canadian Edition
0130355801, 978-0130355805
