Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 14%. In January, the Commercial Products Division had average operating assets of $970,000 and net operating income of $143,700. What was the Commercial Products Division's residual income in January?
A. $7,900
B. ($20,118)
C. ($7,900)
D. $20,118
Answer: A
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Which of the following is an internal event (transaction)?
a. Life guard salaries are paid by a swim club. b. Dividends are distributed to shareholders. c. Eggs used to make omelets in a restaurant are purchased. d. Potato chips are transferred from the production line to the packaging area.
One of the findings of the Mall of Atlanta focus group research mentioned in the text was that respondents who go to the mall for entertainment try to hold costs to under $30, except for special occasions
The client reviewed this information and decided to design a mall experience package that would cost $29.95 The client has fallen victim to which disadvantage of focus groups? A) misuse B) misrepresentation C) messy D) Both A and B are correct.
Which of the following would not be a basis for estimating the useful life of a piece of equipment?
a. Potential production in units b. Potential hours of service c. Historical cost d. Years of service
The connection of many different non-computer devices to the Internet is called ______.
a. the Internet of Things b. network appliances c. cloud computing d. distributed computing