Multiple Choice
Benet Division of United Refinery Company's operating results include: controllable margin $200000; sales $2200000; and operating assets $800000. The Benet Division's ROI is 25%. Management is considering a project with sales of $100000 variable expenses of $60000 fixed costs of $40000; and an asset investment of $150000. Should management accept this new project?
A) No since ROI will be lowered.
B) Yes since ROI will increase.
C) Yes since additional sales always mean more customers.
D) No since a loss will be incurred.
Correct Answer:
Verified
Correct Answer:
Verified
Q125: In computing ROI land held for future
Q126: Copper Manufacturing has prepared the following monthly
Q127: Dingo Division's operating results include: controllable margin
Q128: Devlin Manufacturing makes a single product.
Q129: In a responsibility accounting reporting system as
Q131: Webb Inc. uses a flexible budget
Q132: Decentralization means that the control of operations
Q133: The Medford Burkett Company uses a
Q134: Not-for-profit entities<br>A) do not use responsibility accounting.<br>B)
Q135: Within the relevant range of activity the