Showing 61 to 70 of 616 Questions

Why should the factors under the control of the investment center manager (revenues, expenses, and invested assets) be considered in computing the rate of return on investment?
00 
In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from operations?
00 
How does using the rate of return on investment facilitate comparability between divisions of decentralized companies?
2613 
The rates of return on investment for Fosina Co.’s three divisions, East, Central, and West, are 26%, 20%, and 15%, respectively. In expanding operations, which of Fosina Co.’s divisions should be given priority? Explain.
00 
What is the objective of transfer pricing?
00 
The centralized employee Travel Department of Teapot Dome Company has expenses of $180,000. The department has serviced a total of 2,000 travel reservations for the period. The Norsk Division has made 750 reservations during the period, and the West Division has made 1,250 reservations. How much should each division be charged for travel
2216 
The centralized Help Desk of Hayman Company has expenses of $140,000. The department has provided a total of 5,000 hours of service for the period. Computer Division has used 2,000 hours of Help Desk service during the period, and Peripheral Division has used 3,000 hours of Help Desk service. How much should each division be charged for H
0215 
Using the data for Teapot Dome Company from Practice Exercise 242A along with the data provided below, determine the divisional income from operations for the Norsk and Westdivisions.
0142 
Using the data for the Hayman Company from Practice Exercise 242B along with the data provided below, determine the divisional income from operations for the Computer Division and the PeripheralDivision.
0146 
Mathews Company has income from operations of $50,000, invested assets of $200,000, and sales of $500,000. Use the DuPont formula to compute the rate of return on investment and show (a) The profit margin, (b) The investment turnover, and (c) The rate of return on investment.
0174