Question 29 (2 points) In order to correctly evaluate the performance of an organization's divisions under...
Question 29 (2 points)
In order to correctly evaluate the performance of an organization's divisions under the return-on- investment (ROI) and residual income approaches, the divisions have to be:
Question 29 options:
|
Profit centers |
|
|
Investment centers |
|
|
Cost centers if ROI is used, and they have to be profit centers if residual income is used |
|
|
Profit centers if residual income is used, and they have to be investment centers if ROI is used |
Homework Answers
Add Answer to:
Question 29 (2 points)
In order to correctly evaluate the performance of an
organization's divisions under...
1. + -/3.33 points Question 1 (performance evaluation: RI, ROI) Generic Motors Corporation has two divisions,...
1. + -/3.33 points Question 1 (performance evaluation: RI, ROI) Generic Motors Corporation has two divisions, Kadillack and Chevrolay. Their performance for last year is as follows. Kadillack Chevrolay Investment (operating assets) $300 million $1,200 million Profit $57 million $174 million The required rate of return (cost of capital) for Generic Motors is 10% a year. Required: a) What is the return on investment (ROI) for each division? Kadillack ROI = % (enter say 9.5% as 9.5, not as 0.095...
The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized...
The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Business Division Consumer Division Sales $2,200,000 $2,490,000 Cost of goods sold 1,260,000 1,335,000 Operating expenses 698,000 831,300 Invested assets 1,100,000 2,490,000 1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no service department charges. Recycling Industries...
QUESTION 29 A company is analyzing the performance of responsibility centers. Controllable costs would be included...
QUESTION 29 A company is analyzing the performance of responsibility centers. Controllable costs would be included in the performance reports of which of the following types of responsibility centers? Profit Centers No Yes Yes No Investment centers No A) B) C) D) Yes Yes A) ОВ) o C) o D) QUESTION 30 Profit center managers are often evaluated using return on investment (ROl) or residual income measures. O True False QUESTION 31 An opportunity cost is the potential benefit that...
Divisional Performance Analysis and Evaluation Divisional Performance Analysis and Evaluation The vice president of oper...
Divisional Performance Analysis and Evaluation
Divisional Performance Analysis and Evaluation The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Business Division Consumer Division $42,800,000 Sales Cost of goods sold Operating expenses Invested assets 23,500,000 11,424,800 34,240,000 $56,000,000 30,500,000 14,300,000 70,000,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31,...
JJ POLLS Question 1 (performance evaluation: RI, ROI) Generic Motors Corporation has two divisions, Kadillack and...
JJ POLLS Question 1 (performance evaluation: RI, ROI) Generic Motors Corporation has two divisions, Kadillack and Chevrolay. Their performance for last year is as follows. Kadillack Chevrolay Investment (operating assets) $200 million $800 million Profit 1536 million $112 million The required rate of return cost of capital) for Generic Motors is 10% a year. Required: a) What is the return on investment (ROI) for each division? Kadillack ROI = % (enter say 9.5% as 9.5, not as 0.095 and not...
Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division...
Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division A Division B Investment (operating assets) | $400,000 $1,600,000 Profit $72,000 $224,000 The required rate of return (cost of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROI for A = % (if your answer is 9.5%, enter 9.5 without the percent sign) ROI for B = % b) Compute the residual income (RI) for each division. RI...
2. value: 30.00 points Three divisions of Jameson Co. report the following sales and operating data:...
2. value: 30.00 points Three divisions of Jameson Co. report the following sales and operating data: Sales Average operating assets Operating income Minimum required rate of return Fitness Training $ 550,000 $ 110,000 $ 11,000 6% Spa Services $ 800,000 $ 160,000 $ 16,000 8% Athletic Wear $ 700,000 $ 140,000 $ 21,000 6% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. ROI Fitness training Spa services Athletic wear 2....
Presented below is selected information for two regional divisions of Yono Company: Divisions North West Sales...
Presented below is selected information for two regional divisions of Yono Company: Divisions North West Sales $401,800 $538,000 Operating income 61,811 102,968 Average investment 113,000 244,000 Calculate the return on investment for each division and then break it down into the return on sales and investment turnover. (Round Return on sales to 1 decimal places, e.g. 5.2% and other answers to 2 decimal place, e.g. 5.25 or 5.25%.) North Division Return on investment % Return on sales % Investment turnover...
Divisional Performance Analysis and Evaluation The vice president of operations of Recycling Industries is evaluating the...
Divisional Performance Analysis and Evaluation The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Business Division Consumer Division Sales $42,800,000 $56,000,000 Cost of goods sold 23,500,000 30,500,000 Operating expenses 11,424,800 14,300,000 Invested assets 34,240,000 70,000,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were...
Presented below is selected information for three regional divisions of Medina Company. Divisions North West South...
Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution margin $299,700 $499,800 $399,300 Controllable margin $140,000 $359,100 $208,600 Average operating assets $1,000,000 $1,890,000 $1,490,000 Minimum rate of return 12 % 15 % 8 % a) Compute the return on investment for each division. North Division % West Division % South Division % b) Compute the residual income for each division Compute the return on investment for each division. North Division $ West...
1. + -/3.33 points Question 1 (performance evaluation: RI, ROI) Generic Motors Corporation has two divisions, Kadillack and Chevrolay. Their performance for last year is as follows. Kadillack Chevrolay Investment (operating assets) $300 million $1,200 million Profit $57 million $174 million The required rate of return (cost of capital) for Generic Motors is 10% a year. Required: a) What is the return on investment (ROI) for each division? Kadillack ROI = % (enter say 9.5% as 9.5, not as 0.095...
QUESTION 29 A company is analyzing the performance of responsibility centers. Controllable costs would be included in the performance reports of which of the following types of responsibility centers? Profit Centers No Yes Yes No Investment centers No A) B) C) D) Yes Yes A) ОВ) o C) o D) QUESTION 30 Profit center managers are often evaluated using return on investment (ROl) or residual income measures. O True False QUESTION 31 An opportunity cost is the potential benefit that...
Divisional Performance Analysis and Evaluation
Divisional Performance Analysis and Evaluation The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Business Division Consumer Division $42,800,000 Sales Cost of goods sold Operating expenses Invested assets 23,500,000 11,424,800 34,240,000 $56,000,000 30,500,000 14,300,000 70,000,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31,...
JJ POLLS Question 1 (performance evaluation: RI, ROI) Generic Motors Corporation has two divisions, Kadillack and Chevrolay. Their performance for last year is as follows. Kadillack Chevrolay Investment (operating assets) $200 million $800 million Profit 1536 million $112 million The required rate of return cost of capital) for Generic Motors is 10% a year. Required: a) What is the return on investment (ROI) for each division? Kadillack ROI = % (enter say 9.5% as 9.5, not as 0.095 and not...
Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division A Division B Investment (operating assets) | $400,000 $1,600,000 Profit $72,000 $224,000 The required rate of return (cost of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROI for A = % (if your answer is 9.5%, enter 9.5 without the percent sign) ROI for B = % b) Compute the residual income (RI) for each division. RI...
2. value: 30.00 points Three divisions of Jameson Co. report the following sales and operating data: Sales Average operating assets Operating income Minimum required rate of return Fitness Training $ 550,000 $ 110,000 $ 11,000 6% Spa Services $ 800,000 $ 160,000 $ 16,000 8% Athletic Wear $ 700,000 $ 140,000 $ 21,000 6% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. ROI Fitness training Spa services Athletic wear 2....
Most questions answered within 3 hours.
-
identify at least one other characteristics of the soils/sand
that may have impacted the growth of...
asked 5 seconds ago -
True or False
The following statements refer to The Web of Belief
10. An explanation of...
asked 1 minute ago -
15)___________ A study was conducted to
test the effectiveness of aspirin on reducing
asked 9 minutes ago -
How fast must a centrifuge spin if a particle 8 cm from the axis
of rotation...
asked 10 minutes ago -
Which of the following is characteristic of a single exposure
common vehicle outbreak?
a. Wide range...
asked 12 minutes ago -
You are a member of an alpine rescue team and must get a box of
supplies,...
asked 15 minutes ago -
Where the conservation of biodiversity is concerned, can I be
assisted with these questions:
1. What...
asked 16 minutes ago -
A 79-Ω loudspeaker, a 8.0-Ω loudspeaker, and a 3.7-Ω loudspeaker
are connected in parallel across the...
asked 46 minutes ago -
If X has a normal distribution with mean µ =
12 and variance σ2 = 9,...
asked 55 minutes ago -
An example of an operational taxonomic unit
(OTU) is
a. Multiple sequence alignment.
b. Protein sequence....
asked 57 minutes ago -
Electrons flow through a 2.7-mm-diameter aluminum wire at
2.5×10−4 m/s .
How many electrons move through...
asked 56 minutes ago -
For a recent year, McDonald’s (MCD)
company-owned restaurants had the following sales and expenses (in
millions):...
asked 55 minutes ago