Question
Can you help me out with these True/False Statements 1. In general, leased items should not be included as investments when calculating ROI. T/F 2.
Can you help me out with these True/False Statements
1. In general, leased items should not be included as investments when calculating ROI. T/F
2. The market price method sets the transfer price as the current price of the selling unit's product in the market. T/F
3. Asset turnover, the amount of dollar sales achieved per dollar on investment, measures the manager's ability to control expenses related to a given level of investment. T/F
4. Generally, liquidation value is higher than the replacement cost. T/F
5. The variable cost method sets the transfer price equal to the selling unit's variable cost plus the selling unit's allocated fixed costs. T/F
6. Return on sales (ROS) is a measure of profit per sales dollar; it measures the investment center manager's ability to control expenses and increase revenues to improve profitability. T/F
7. ROE is of special interest to shareholders and business owners because it is a direct measure of the firm's return to owners. T/F
8. Discounted cash flow (DCF) techniques are used to make capital investment decisions, while historical-cost-based ROI metrics are used to evaluate subsequent performance. T/F
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