Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all questions 5. Tom i division manager of a company His division is doing gardening services. Tom can make the * where to

Please answer all questions image text in transcribed
5. Tom i division manager of a company His division is doing gardening services. Tom can make the * where to buy chemicals from who to hire as workers and wages * advertising pricing of various gardening services purchasing or disposing of equipments such as lawn mowers, trimming machines, trucks, etc. The division is a(n): A. cost center. B. profit center C. investment center. D. revenue center. Which of the following is not true of performance measures? A. Return on investment is used for investment centers and residual income is used for profit centers. B. When comparing performances of different investment centers, return on investment should be used. C. Economic value added is a variant of residual income. D. Using residual income prevents the possibility of good projects being rejected by investment centers. 6. Which of the following is not true of "investment"? A. It means investment in net operating assets B. It represents the amount of resources used in operation. C. The more investment a division has, the more dollar income the division is supposed to generate. D. If everything else remains the same, as investment increases, residual income will go up. 7. Tom has Sales revenue of $250,000 and Income of $50,000. His investment in operating assets averages $100,000. His margin, turnover, and return on investments, respectively, are: 8. A. 20% 2 40% B. 50% 2.5 20% C. 20% 2.5 50% D. 40% 5 50% E. 40% 2 20% Tom has an $18,000 income. His investment in operating assets averages $300,000. At a minimum Tom is supposed to obtain a 5% return. Tom's residual income is: $ 9. 10. A company has the following results: Average operating assets Sales Minimum required return Residual income $450,000 15% S 9,000 The company's ROI is: %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Culture Audit In Financial Services Reporting On Behaviour To Conduct Regulators

Authors: Dr Roger Miles

1st Edition

1789667755, 978-1789667752

More Books

Students also viewed these Accounting questions