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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
____ 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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