Question
Please answer the following questions: Q1How is the return on investment (ROI) calculated? a. Operating income divided by the investment in operating assets b. Operating
Please answer the following questions:
Q1How is the return on investment (ROI) calculated?
a. Operating income divided by the investment in operating assets
b. Operating income divided by sales
c. Sales divided by investment
d. All of the above
Q2 Return on Sales (ROS) is a measure of which of the following?
a. Operating income as a percentage of assets
b. The number of pennies left over from each dollar of sales after covering all costs
c. The amount of extra income after a division earns a minimum ROI
d. None of the above
Q3 Which of the following is not a type of business segment?
a. Cost Center
b. Investment Center
c. Management Center
d. Profit Center
Q4 Amos Manufacturing has two major departments. Management wants to compare their relative performance. Information related to the two departments is as follows:
Department 1: | |
Sales: | $400,000 |
Expenses: | 250,000 |
Asset investment: | 950,000 |
Department 2: | |
Sales: | $75,000 |
Expenses: | 45,000 |
Asset investment: | 400,000 |
What is the Return on Sales (ROS) for Department 2?
a. 20%
b. 30%
c. 40%
d. 50%
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