Enrod’s cost of capital is 16%. Compare the performance of the two divisions under both ROI and Residual income measures. In which division should Enrod invest more capital?
Answer to relevant QuestionsExplain how the role of management accounting has changed over the last 100 years. A business has agreed to undertake an advertising campaign that will cost £240,000 to be carried out equally over the financial year beginning 1st January. Half of the annual cost is to be paid six-monthly in advance on the ...Golf Holdings has two divisions: Alpha and Bravo. Alpha has a variable cost of sales of £11 per unit which is its transfer price to Bravo. However, Alpha can sell its product on the open market for a variable selling cost ...The standard costs for a manufacturing business are £12 per unit for direct materials, £8 per unit for direct labour and £5 per unit for manufacturing overhead. The sales projection is for 5,000 units, 3,500 units need to ...A company has budgeted for materials of £170,000 but the actual costs are £164,000. The company has also budgeted for labour of £130,000 with actual costs being £133,000. The expense variance is: b) £3,000 favourable
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