Major disadvantage of residual income approach is a. It can be used to compare performance of...
Major disadvantage of residual income approach is It can be used to compare performance of divisions of same sizes b. It can be used to compare performance of divisions of different sizes C. It cannot be used to compare performance of divisions of same sizes d. It cannot be used to compare performance of divisions of different sizes
a. Major disadvantage of residual income approach is It can be used to compare performance of divisions of same sizes b. It can be used to compare performance of divisions of different sizes It cannot be used to compare performance of divisions of same sizes d. It cannot be used to compare performance of divisions of different sizes C. Select one: a. It cannot be used to compare performance of divisions of different sizes O b. It can be used...
What is the major disadvantage of the internal rate of return method? Select one: a. It can produce more than one internal rate of return. O b. It ignores the expected service life. c. It discriminates against long-term projects. O d. It complicates the comparison of projects of the different sizes. o e. It ignores the time value of money.
Rachael Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 11%. In April, the Commercial Products Division had average operating assets of $100,000 and net operating income of $20,000. What was the Commercial Products Division's residual income in April? Group of answer choices A. $9,000 B. $80,000 C. $79,000 D. $20,000
Select the best answer for the question. 3. Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the commercial products division had average operating assets of $530,000 and net operating income of $76,700. What was the commercial products division's residual income in August? A. ($9,971) B. ($7,800) C. $9,971 D. $7,800 Mark for review (Will be highlighted on the review page)
What is one disadvantage of NPV as a capital budget method? It does not deliver an overall picture of the gain or loss of implementing a project. It can be misleading if inputs like cash flow turn out to be wrong. It is rarely used, so there is disagreement as to what an adequate NPV is. It cannot be used to compare investments with different upfront costs.
Select the best answer for the question 3. Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the commercial products division had average operating assets of $530,000 and net operating income of $76,700. What was the commercial products division's residual income in August? A. ($9,971) B. ($7,800) C. $9.971 D. $7,800 Mark for review (Will be highlighted on the review page) 4. Hair Corporation bases its...
Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 5,200,000 $ 1,300,000 $ 223,600 10.00% Division B $ 9,200,000 $ 4,600,000 $ 763,600 16.60% Division C $ 8,300,000 $ 2,075,000 $ 128,650 7.00% Required: 1. Compute the return on investment (ROI) for...
Which of the following are relative performance evaluations designed to accomplish? A. Select goals using the Delphi approach B. Restate departmental goals to enable meaningful comparisons to be made C. Remove the effect of evironmental factors that are beyond a manger's control D. Compare managers to other managers in divisions that are unalike
The major problem with running a functionally organized firm is a. Measuring divisions’ performance b. Tying pay to performance c. Ensuring that the functional divisions are working towards a common goal d. All of the above