Which statement is true regarding divisional performance? O If a division's return on investment is less than its margin, then the division's sales are greater than its average operating assets. O A reduction in selling and administrative expenses increases a division's margin but does not increase its return on investment if the division's turnover is less than one. O If a division's return on investment is greater than its margin, then the division's sales are less than its average operating assets. O An increase in labor costs will reduce a division's margin and its return on investment even if the division's vision turnover is less than one.

Which statement is true regarding divisional performance? O If a division's return on investment is less than its margin, then the division's sales are greater than its average operating assets. O A reduction in selling and administrative expenses increases a division's margin but does not increase its return on investment if the division's turnover is less than one. O If a division's return on investment is greater than its margin, then the division's sales are less than its average operating assets. O An increase in labor costs will reduce a division's margin and its return on investment even if the division's vision turnover is less than one.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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