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vodomira [7]
3 years ago
15

Performance is evaluated for an investment center through the comparison of actual and budgeted return on investment (ROI) based

on segment margin and assets controlled by the segment.
a. True
b. False
Business
1 answer:
igor_vitrenko [27]3 years ago
3 0

Answer:

True

Explanation:

<em>Return on Investment (ROI) is the proportion of operating assets that an investment center earned as as net operating income.  </em>

<em>ROI is measure of the returned earned by a division relative to the amount invested in the assets used to generate the return. </em>

It is calculated as follows  

ROI = operating income/operating assets  × 100

To evaluate a division, the division's ROI is compared to the budgeted ROI of the company. An actual ROI that exceeds the budgeted is considered a good performance and vice versa

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Flitter reported net income of $25,500 for the past year. at the beginning of the year the company had $216,000 in assets and $6
Brut [27]

Answer:

There are two ways in which Return on Assets can be calculated depending on whether we consider Total assets at year-end or average total assets.

Return on Assets = \frac{Net Income}{Total Assets at year end}   1

                                                          or

Return on Assets = \frac{Net Income}{Average Assets}       2

Substituting the values in equation 1 we get,

Return on Assets = \frac{25500}{316000}

Return on Assets = \frac{25500}{316000}

Return on Assets = 0.080696203  or 8.07%

Substituting values in equation 2 we get,

Return on Assets = \frac{Net Income}{Average Assets}

Return on Assets = \frac{Net Income}{\frac{Assets at beginning + Assets at year end}{2}}

Return on Assets = \frac{25500}{\frac{216000 + 316000}{2}}

Return on Assets = \frac{25500}{266000}

Return on Assets = 0.095864662 or 9.58%

5 0
3 years ago
Workers in the nation of Brotherton expect managers to forcefully tell employees what to do, how to do it, and when. On the othe
pogonyaev

Answer:

The answer is B. Socio-cultural

Explanation:

The socio-cultural environment refers to the beliefs, practice, customs, tradition that influences the behaviour of a people that lives in a given population.  

The socio-cultural belief of the  nation of Brotherton is one that believe that all  the planning activities of the organisation should be the duties of manager alone and the employee are just to do as they are told.

However, the American workers participate and make contributions in the decision making process of the organisation.  

       

5 0
3 years ago
Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,00
zhuklara [117]

Answer:sales must have amounted to:$704,000

Explanation:

Contribution ratio = Sales ratio - Variable cost ratio

= 100%- 75%

=25%

Sales to break even = Fixed expenses / Contribution margin ratio

Therefore,

 Fixed expenses = Sales to break even   x  Contribution margin ratio

=$840,000 x 25%

=$210,000

Contribution margin can also be calculated as

Fixed expenses- Operating loss

=$210,000 -$34,000

=$176,000

Sales = Contribution margin/ Contribution ratio

= $176,000/25% =$704,000

5 0
2 years ago
Your family owns a small construction company, CopperBuild, that builds custom homes for an upscale architectural firm. Your two
beks73 [17]

Answer:

All the statements apply

Explanation:

1. Avoid mere mechanical descriptions.

This statement applies because it is an architectural proposal, thus, it should include aesthetic descriptions.

2. Emphasize the benefits to the recipient.

The proposal should include the ways CopperBuild would benefit the investors of the shopping center, from an architectural, and financial point of view.

3. Detail your expertise and accomplishments.

CopperBuild should add a few pages highlighting the firm's past experience, this in order to obtain more credibility.

4. Proposals are sales presentations.

This is a good analogy because what CopperBuild is doing by means of the proposal is selling "itself" (its experience, credibility, prestige) to the investors in order to get the contract.

7 0
3 years ago
In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made leg
const2013 [10]

Answer:

b. speed money

Explanation:

Speed money -

It refers to the amount of money provided in order to increases the time period of any process or task , is referred to as speed money .

It is also known as grease payments .

It is different from the bribe , as bribe is given in order to approve the activity or task .

But speed money is used to hasten the time period .

Hence , from the given question ,

The correct answer is speed money .

3 0
3 years ago
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