Residual income is calculated as
A) operating income - (ROI x average operating assets).
B) operating income/(ROI x average operating assets).
C) operating income/(minimum rate of return x average operating assets).
D) operating income - (minimum rate of return x average operating assets).
E) (minimum rate of return x average operating assets)/operating income.
D
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Cost of goods sold represents
a. Expired costs during a period and is reported on the income statement. b. Expired costs and is reported on the balance sheet as an expense. c. Unexpired costs and is reported on the balance sheet as an asset. d. The cost of goods that will be purchased during the next operating cycle and is reported on the balance sheet as an asset.
You have just received an email from the new staff person, Jennifer Lark. She has just started working in the Fixed Assets Department of your company. She would like to know under what circumstances should she capitalize interest as part of the cost of an asset. In a brief memo, explain the issues to Ms. Lark
Why do stores cluster together?
A) to decrease competition B) to ensure an adequate level of traffic C) to take advantage of tax breaks D) to create retailer cooperatives E) to standardize the service mix
Consistency is one of the two important principles of ________ upon which its universal laws are based
A) utilitarianism B) Kantian ethics C) Rawls's social justice theory D) moral relativism