In evaluating the profit center manager, the income from operations should be compared over

a$.$ time to profit centers

b$.$ time to a budget

c$.$ profit centers to management's preference

d$.$ None of these are correct.

TMM$\mathrm{.}24\mathrm{.}04$

Click to watch the Tell Me More Learning Objective $4$ video and then answer the questions below.

The return on investment $($ROI$)$ is computed as

a$.$ net income divided by invested assets

b$.$ revenue divided by invested assets

c$.$ income from operations divided by invested assets

d$.$ None of these are correct.

When comparing Return on Investment $($ROI$)$ over time, a favorable trend would be

a$.$ an increase in ROI

b$.$ a decrease in ROI

c$.$ no change in ROI

d$.$ None of these are correct.

The excess of income from operations over a minimum acceptable income from operations is called.

a$.$ net income

b$.$ residual income

c$.$ operating income

d$.$ None of these are correct.

MM$\mathrm{.}24\mathrm{.}05$

Click to watch the Tell Me More Learning Objective $5$ video and then answer the questions below.

The three common approaches to setting transfer prices include all of the following except the approach.

a$.$ market price

b$.$ negotiated price

c$.$ cost price

d$.$ preferred pricing

Using the approach, the transfer price will be the price at which the product or service transferred could be sold to outside buyers.

a$.$ market price

b$.$ negotiated price

c$.$ cost price

d$.$ preferred pricing