Calculating return on investment for an investment center is defined by the following formula:

a. contribution margin/Ending assets.

b. gross profit/Ending assets.

c. net income/Ending assets.

d. income/Average invested assets.

e. contribution margin/Average invested assets.

The anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are:

a. variable costs.

b. fixed costs.

c. standard costs.

d. product costs.

e. period costs.

Bonds that mature at more than one date with the result that the principal amount is repaid over a number of periods are known as:

a. registered bonds.

b. bearer bonds.

c. callable bonds.

d. sinking fund bonds.

e. serial bonds.

A contract pledging title to assets as security for a note or bond is known as a(n):

a. sinking fund.

b. mortgage.

c. equity.

d. lease.

e. indenture.

A hybrid costing system would be most appropriate when:

a. a manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs.

b. large quantities of identical products are being produced.

c. the volume of production is low and costs are high.

d. there is no standardization of units of production.

e. all the products produced are unique.

Standard costs are:

a. actual costs incurred to produce a specific product or perform a service.

b. preset costs for delivering a product or service under normal conditions.

c. established by the IMA.

d. rarely achieved.

e. uniform among companies within an industry.