The correct answer is the matching principle.
This principle stipulates that every expense that a company makes has to match with the revenues it brought to the company within the same accounting period when both of them happened. So, basically, a company has to have a list of expenses and profits they gained in the same period.
If the investment turnover is 1.20 for one of its investment centers, the return on investment must be: 39.72%.
Using this formula
Return on investment = Profit margin ×Investment turnover
Where:
Profit margin=33.1% or 0.331
Investment turnover=1.20
Let plug in the formula
Return on investment = 0.331×1.20
Return on investment = 0.3972×100
Return on investment = 39.72%
Inconclusion If the investment turnover is 1.20 for one of its investment centers, the return on investment must be: 39.72%
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<u>B)</u><u> Organizational learning.</u>
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<h3><u>Organizational learning: What is it?</u></h3>
Organizational learning is the process through which a company develops over time by gaining information and applying that understanding to experience. The newly developed information is subsequently shared inside the company.
All businesses should prioritize organizational learning since internal knowledge production, transfer, and retention strengthen the organization as a whole.
There are three primary acts to take into account when examining the definition of organizational learning:
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Answer:
Contribution per unit of Bran X = 51 cents
Contribution margin: 51 / 69 = 73.91%
Explanation:
<em>Retail price: 1.20</em>
retail margin of 35% --> thus the cost of good is 1.20 x ( 1 - 0.35) = 0.78
At this price the wholesalers trade to grosery store and others
wholesales margin 11.5% --> the price at which Alger sales the product to wholesalers:
0.78 x (1- 0.115) =<em> 0.6903 producer selling price</em>
Now from this, Horatio has the following variable cost:
variable manufacturing cost: 0.08
shipping and other cost: 0.03
sales persons 10% commision 0.06903
Total variable cost: 0.17903
Contribution per product: .6903 - 0.17903 = 0.51127 = 51 cents
Answer:
Differential income = $960
Explanation:
<em>In a special order decision , the offer should be accepted if the sales revenue from the order is greater than the relevant costs of the special orders.</em>
The relevant costs of the special order = variable cost + additional cost of special stitching machine
$
Sales revenue (120× $18) 2,160
The relevant costs of the special order
= (120×8) + (120×2) <u>(1,200)</u>
Differential income <u> 960</u>