10. Assuming that sales and operating income remain the same, which of the following statements about a company's return on investment is correct? Select one: a. It will decrease if operating assets decrease. b. It will decrease if turnover decreases. c. It will decrease if turnover increases. d. It will increase if operating assets increase.
10. Assuming that sales and operating income remain the same, which of the following statements about a company's return on investment is correct? Select one: a. It will decrease if operating assets decrease. b. It will decrease if turnover decreases. c. It will decrease if turnover increases. d. It will increase if operating assets increase.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 21E: If sales and average operating assets for Year 2 are identical to their values in Year 1, yet...
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Question
10.
Assuming that sales and operating income remain the same, which of the following statements about a company's return on investment is correct?
Select one:
a. It will decrease if operating assets decrease.
b. It will decrease if turnover decreases.
c. It will decrease if turnover increases.
d. It will increase if operating assets increase.
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