Indicate whether each of the following statements is true or false.A responsibility accounting system is useful for controlling operations but not for evaluating the performance of managers. FReturn on investment is usually calculated by dividing operating income by operating assets. TMany businesses use the return on investment of departments and other segments in deciding how to allocate resources within the company. TThe use of return on investment to allocate resources within an organization is unlikely to motivate segment managers to improve performance. FReturn on investment for a division should be calculated based on factors the division manager can control. T
What will be an ideal response?
A responsibility accounting system is useful for controlling operations but not for evaluating the performance of managers. F
Return on investment is usually calculated by dividing operating income by operating assets. T
Many businesses use the return on investment of departments and other segments in deciding how to allocate resources within the company. T
The use of return on investment to allocate resources within an organization is unlikely to motivate segment managers to improve performance. F
Return on investment for a division should be calculated based on factors the division manager can control. T
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Answer the following statements true (T) or false (F)
With pooling of interests, total stockholders’ equity of the combined enterprise would be equal to the sum of the separate companies’ equities immediately prior to the combination.
Which of the following is an advantage of the indirect strategy?
A) Saves the reader's time B) Respects the feelings of the audience C) Reduces frustration D) Sets a proper frame of mind