Question $11(1$ point$)$

Which of the following would improve a firm's return on investment?

Question $11$ options:

a$)$

Raising sales prices and incurring higher expenses.

b$)$

Increasing earnings and investment in assets.

c$)$

Lowering sales prices and increasing asset investment.

d$)$

Increasing revenues, decreasing expenses, and decreasing investment in assets.

Question $12(1$ point$)$

In computing ROI many companies utilize "Operating Income and Operating Assets" because:

Question $12$ options:

a$)$

Net Income and Net Assets are not performance measures.

b$)$

Non$-$operating assets are not always under the control of the manager being evaluated.

c$)$

Managers can determine what items they feel they should be evaluated based upon.

d$)$

Net Income is a Financial Statement concept.

Question $13(1$ point$)$

Which concept is crucial to an effective responsibility accounting system?

Question $13$ options:

a$)$

Net Income.

b$)$

Divisional Income.

c$)$

ROI.

d$)$

Controllability.

Question $14(1$ point$)$

Responsibility Reports

Question $14$ options:

a$)$

Should be simple.

b$)$

Should express qualitative aspects of the entire company

c$)$

Should contain information on fellow divisions to encourage communication.

d$)$

Should not be relevant to the manager's performance.

Question $15(1$ point$)$

The Margin

Question $15$ options:

a$)$

expresses the amount of assets used to produce earnings.

b$)$

expresses qualitative aspects of a manager's performance.

c$)$

expresses the manager's ability at controlling expenses relative to sales.

d$)$

expresses the manager's performance relative to turnover.