What is the major shortcoming of using income from operations as a performance measure for investment centers?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
The major shortcoming of using income from operations as a measu...View the full answer
Answered By
Danish Sohail
My objective is to become most reliable expert for clients. For last 10 years I have been associated with the field of accounting and finance. My aim is to strive for best results and pay particular attention to client needs. I am always enthusiastic to help clients for issues and concerns related to business studies. I can work on analysis of the financial statements, calculate different ratios and analysis of ratios. I can critically evaluate stock prices based on the financial analysis and valuation for companies using financial statements of the business entity being valued with use of excel tools. I have expertise to provide effective and reliable help for projects in corporate finance, equity investments, financial accounting, cost accounting, financial planning, business plans, marketing plans, performance measurement, budgeting, economic research, risk assessment, risk management, derivatives, fixed income investments, taxation, auditing, and financial performance analysis.
4.80+
78+ Reviews
112+ Question Solved
Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Question Posted:
Students also viewed these Managerial Accounting questions
-
What is the major shortcoming of using the payback period as the only criterion in making capital budgeting decisions?
-
How can using ROI as a performance measure for investment centres lead to bad decision making? What steps can be taken to mitigate this effect?
-
What is the major difference between job order costing and process costing?
-
Refer to Example 9. After how many seconds will the rocket be (a) 240 ft above the ground? (b) 112 ft above the ground? Data from in Example 9 EXAMPLE 9 Using a Quadratic Function in an Application...
-
The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8: Employees Mantle and Williams are office staff, and all of the other employees are sales...
-
What happens immediately after a chlorophyll molecule absorbs light? Explain
-
What roles might more recent analysis activities, such as data mining, predictive statistical analyses, and operational experiments, play in increasing organizational effectiveness?
-
You bought one of Bergen Manufacturing Co.s 7 percent coupon bonds one year ago for $1,080.50. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds...
-
Using the BCG Matrix In the following mini-case study, you are required to categorize the corporation's business portfolio into the four boxes of the BCG (Boston Consulting Group) model. You then...
-
Apprentice Corporation purchased a pulp and paper mill in Northwestern Ontario on March 1, 2021. The Ontario Ministry of the Environment is requiring that Apprentice Corporation dismantle the mill...
-
In what major respect would budget performance reports prepared for the use of plant managers of a manufacturing business with cost centers differ from those prepared for the use of the various...
-
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?
-
Assume that a soap bubble retains its spherical shape as it expands. At time t = 0 the soap bubble has radius 2 centimeters. At time t = 1, the radius has increased to 2.5 centimeters. How much has...
-
For the beam structure shown below, find all support reactions, draw the Shear Force Diagrams and the Bending Moment Diagrams (assuming El is constant for all members) using the following methods and...
-
The figure below represents a backfill behind a smooth vertical retaining wall. Estimate the magnitude and line of action of the lateral active force per meter length of the wall. What would be the...
-
The data in the following table were obtained in a travel time study on a section of highway with length 1.5 km, using the moving-vehicle technique. Determine average travel time, volume, and speed...
-
Water flows through the joint as shown below. Find the horizontal and vertical components of the force acting on the joint because of the flow of water. Neglect energy loss and body forces. A = 0.1 m...
-
B. Giulia runs at 4.5 m/s (1 m/s is 2.2 mi/h ... just think "about 2 mi/h"). She is running eastward into the sunrise and along a straight-line path. Show a complete sketch from when you start...
-
For EHV lines, a common practice of conductor bundling is used. Why?
-
Organizations are increasing their use of personality tests to screen job applicants. What are some of the advantages and disadvantages of this approach? What can managers do to avoid some of the...
-
Which of the following is a good place to look for inadequate disclosures? a. Board of directors minutes. b. Correspondence and invoices from attorneys. c. Confirmations with banks and others. d....
-
Use the data in ADM-2 and ADM-3 to analyze the accounts receivable turnover ratios of Ralph Lauren Corporation and L Brands, Inc. A. Compute the accounts receivable turnover ratios for Ralph Lauren...
-
Use the data in ADM-2 and ADM-3 to analyze the accounts receivable turnover ratios of Ralph Lauren Corporation and L Brands, Inc. A. Compute the accounts receivable turnover ratios for Ralph Lauren...
-
Bud Lighting Co. is a retailer of commercial and residential lighting products. Gowen Geter, the company's chief accountant, is in the process of making year-end adjusting entries for un-collectible...
-
If they are both eligible to collect the maximum CPP at age 65, what would their individual retirement incomes be including a 6% gross withdrawal from their RRIF and pension plans? (6 Marks)
-
What term refers to raising funds and buying assets to obtain the highest possible return?
-
Modeler's prospective stock has a 15% chance of producing a 75% return, a 25% chance of producing a 22% return, a 40% chance of producing a 9% return, and a 20% chance of producing a -20% return.What...
Study smarter with the SolutionInn App