MANAGERIAL ACCOUNTING FOR MANAGERS AC
MANAGERIAL ACCOUNTING FOR MANAGERS AC
5th Edition
ISBN: 9781265881863
Author: Noreen
Publisher: MCG
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Chapter 11, Problem 11.13E

1

To determine

Compute the company’s return on investments

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

2

To determine

Company’s ROI if there is no increase in the average operating assets.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

3.

To determine

If sales is increased and it results in increase in net operating income then new ROI of company.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

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