Which of the following is true? O Increasing the average operating assets can increase ROI. When ROI is calculated, management would prefer a high percentage. O Increasing either controllable margin or the average operating assets can raise ROI. ROI is the primary basis for evaluating profit and investment centre managers.
Which of the following is true? O Increasing the average operating assets can increase ROI. When ROI is calculated, management would prefer a high percentage. O Increasing either controllable margin or the average operating assets can raise ROI. ROI is the primary basis for evaluating profit and investment centre managers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Please explain properly for upvote
Transcribed Image Text:Which of the following is true?
Increasing the average operating assets can increase ROI.
When ROI is calculated, management would prefer a high percentage.
Increasing either controllable margin or the average operating assets can raise ROI.
ROI is the primary basis for evaluating profit and investment centre managers.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education