Which of the following statements is true? Multiple Choice Assuming all else holds constant, if the average inventories increase, then the margin will increase. Assuming all else holds constant, if the average inventories increase, then the margin will decrease. Assuming all else holds constant, if the average inventories increase, then the turnover will increase. Assuming all else holds constant. If the average inventories increase, then the turnover will decrease. Which of the following is the definition for residual Income? Multiple Choice The net operating income that an investment center earns above the minimum required return on its total sales. O The net operating income that an investment center earns above the minimum required return on Its average operating assets. The net operating income that an investment center earns above the minimum required return on its total current assets. The net operating income that a profit center earns above the minimum required return on its total current assets. Which of the following is a criticism of return on investment (RON? Multiple Choice A manager who is evaluated using ROI may reject investment opportunities that lower her ROI even though the investment would be profitable for the company as a whole. A manager's non-operating assets are excluded from the calculation of ROL A manager can control turnover, but is unable to control margin even though it Influences the calculation of ROI. A manager can control margin, but is unable to control turnover even though it influences the calculation of ROI. Which of the following should be ignored when making decisions? 16 Multiple Choice 01:57:03 Sunk costs Differential costs Avoidable costs Incremental costs