Calculating return on investment for an investment center is defined by the following formula:

A. Gross profit/Ending assets.
B. Contribution margin/Average invested assets.
C. Contribution margin/Ending assets.
D. Net income/Ending assets.
E. Income/Average invested assets.


Answer: E

Business

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Indicate whether the statement is true or false

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Which of the following is false regarding the valuation of goodwill?

a. U.S. accounting standards require that goodwill be specifically identified with an operating segment or a reporting unit. b. By definition, acquired parts of the business (or goodwill) must be sufficiently identifiable so that they can be managed as a unit or may be separately identified and sold as a unit. c. Goodwill is tested for impairment quarterly. d. Goodwill is the excess of the purchase price over the fair market value of the acquired company's tangible assets, identifiable intangible assets, and liabilities.

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Indicate whether the statement is true or false

Business

How does the role of a strategic planner at the corporate level differ from the role of a planner within the SBU

What will be an ideal response?

Business