The d Division of tefany Company had the following financial data for the year
Responsibility Acctng 0 ratings0% found this document useful (0 votes) 959 views5 pagesDocument Informationclick to expand document information
Gg Original TitleResponsibility acctng Copyright© © All Rights Reserved Available FormatsDOC, PDF, TXT or read online from Scribd Share this documentShare or Embed DocumentSharing Options
Did you find this document useful?0%0% found this document useful, Mark this document as useful 0%0% found this document not useful, Mark this document as not useful Is this content inappropriate?Report this DocumentDownload now SaveSave Responsibility acctng For Later 0 ratings0% found this document useful (0 votes) Responsibility Acctng Original Title:Responsibility acctng Uploaded byKatherine Ederosas
Gg Full descriptionSaveSave Responsibility acctng For Later 0%0% found this document useful, Mark this document as useful 0%0% found this document not useful, Mark this document as not useful EmbedShare PrintDownload now Jump to Page You are on page 1of 5Search inside document You're Reading a Free Preview Buy the Full Version Reward Your CuriosityEverything you want to read. Anytime. Anywhere. Any device. No Commitment. Cancel anytime. Share this documentShare or Embed DocumentSharing Options
Home Books Audiobooks Documents Which of the following responsibility center may be evaluated on the basis of residual income?The investment center will most likely be evaluated using the residual income. Residual income helps evaluate investments using the common cost of capital rate among all the responsibility centers.
What can be said if a division generates a positive residual income?A positive residual income would indicate that a division's ROI was lower than the minimum required rate of return for the division. ROI used alone as a performance measure discourages managers from accepting all investment decisions that will benefit the company as a whole.
Has established a target rate of return of 16% for all divisions?Texas Company has established a target rate of return of 16% for all divisions. For the most recent year, San Marcos Division generated sales of $10,000,000 and expenses of $7,500,000. Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000.
|