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    Cost Accounting Study Set 1
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    Exam 22: Multinational Performance Measurement and Compensation
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    Hargrave Products Has Three Divisions Which Operate Autonomously
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Hargrave Products Has Three Divisions Which Operate Autonomously

Question 3

Question 3

Essay

Hargrave Products has three divisions which operate autonomously.Their results for the current year were as follows:
Hargrave Products has three divisions which operate autonomously.Their results for the current year were as follows:    The company's desired rate of return is 15 percent.Required: a.Compute each division's ROI.Round to three decimal places. b.Compute each division's residual income. c.Rank each division by both ROI and residual income. The company's desired rate of return is 15 percent.Required:
a.Compute each division's ROI.Round to three decimal places.
b.Compute each division's residual income.
c.Rank each division by both ROI and residual income.

Correct Answer:

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