31.   The normal selling price must be set high enough to cover all costs and expenses (fixed and variable) and provide a reasonable profit.   ____   32.   Methods that ignore present value in capital investment analysis include the cash payback method.   ____   33.   The rate of return on investment may be computed by multiplying investment turnover by the profit margin.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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____   31.   The normal selling price must be set high enough to cover all costs and expenses (fixed and variable) and provide a reasonable profit.

 

____   32.   Methods that ignore present value in capital investment analysis include the cash payback method.

 

____   33.   The rate of return on investment may be computed by multiplying investment turnover by the profit margin.

 

____   34.   The excess of divisional income from operations over a minimum amount of desired income from operations is termed the residual income.

 

____   35.   Responsibility accounting reports for profit centers are normally in the form of income statements.

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