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Major disadvantage of residual income approach is
It cannot be used to compare the performance of divisions of different sizes.
Option d.
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Major disadvantage of residual income approach is It can be used to compare performance of divisions...
Major disadvantage of residual income approach is a. It can be used to compare performance of...
Major disadvantage of residual income approach is a. 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 Select one: a. It cannot be used to compare performance of divisions of different sizes b. It can be used to...
a. Major disadvantage of residual income approach is It can be used to compare performance of...
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...
Rachael Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required...
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
The major problem with running a functionally organized firm is a. Measuring divisions’ performance b. Tying...
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
. Baxter Bros. is a manufacturing company that has two major divisions. Both divisions have requi...
. Baxter Bros. is a manufacturing company that has two major divisions. Both divisions have required a significant investment, and management wants to compare their performance. Below is information related to the two divisions. Division A Division B $30,000 $40,000 $25,000 $35,000 Asset investment $100,000 $100,000 Sales Expenses Management is confused that the ROl seems to be the same for both divisions, and wants a deeper evaluation Which division generates greater profitability per sales dollar?
. Baxter Bros. is a...
Evaluating New Investments Using Return on Investment (ROI) and Residual Income Three divisions of Watcore Inc....
Evaluating New Investments Using Return on Investment (ROI) and Residual Income Three divisions of Watcore Inc. report the following sales and operating data: Division A Division B Division C Sales . . .... . . . . . .. . .. .. $6,000,000 $10,000,000 $8,000,000 Average operating assets . . . $1,500,000 $5,000,000 $2,000,000 Operating income ... .... . . $300,000 $900,000 $180,000 Minimum required rate of return. 15% 18% 12% Required: 1. Compute the return...
What is the major disadvantage of the internal rate of return method? Select one: a. It...
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.
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...
Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Selected...
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...
Select the best answer for the question. 3. Koogle Corporation uses residual income to evaluate the...
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)
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...
. Baxter Bros. is a manufacturing company that has two major divisions. Both divisions have required a significant investment, and management wants to compare their performance. Below is information related to the two divisions. Division A Division B $30,000 $40,000 $25,000 $35,000 Asset investment $100,000 $100,000 Sales Expenses Management is confused that the ROl seems to be the same for both divisions, and wants a deeper evaluation Which division generates greater profitability per sales dollar?
. Baxter Bros. is a...
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.
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...
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)
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