1.
:
The margin, turnover, and return on investment (ROI) of the company.
2.
Operating assets: Operating assets refer to those assets which are acquired by the company to support its ongoing business operations. These are the assets that contribute to generating revenue. For instance, cash,
:
The effect of reduction in the average level of inventory on the margin and turnover of the company and computation of the revised return on investment.
3.
Cost saving refers to the benefit realized by the company by reducing the overall spending or cost of conducting a business. Cost saving has a direct impact on the
:
The effect of the cost saving on the margin and turnover of the company and computation of the revised return on investment.
4.
Production costs: Production costs refer to the total costs incurred by an organization in order to manufacture a product or provide a service to the customers. Production cost includes both the direct cost as well as indirect costs. For example, raw materials, labor, general
:
The effect of the purchase of plant and machinery, reduction in production cost on the margin and turnover of the company, and computation of the revised return on investment.
5.
Sales revenue: Sales revenue is the amount earned by the company by selling goods or providing services to the customers. It is determined by multiplying the number of units sold with the selling price per unit. The amount of sales revenue is recorded under the head of gross revenue or net revenue in the income statement.
:
The effect of an increase of 20% in sales on the margin and turnover of the company and computation of the revised return on investment.
6.
Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.
:
The effect of scrapped inventory on the margin and turnover of the company and computation of the revised return on investment.
7.
Cash and cash equivalents: Cash and cash equivalents are short-term or current investments that can be converted into a specific amount of cash quickly. An instrument that can be converted into cash within 3 months or less refers to a cash equivalent. In a
:
The effect of reduction in cash on the margin and turnover of the company and computation of the revised return on investment.

Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
MANAGERIAL ACCOUNTING LL/W ACCESS
- I want to this question answer general accountingarrow_forwardTitan Enterprises uses a standard cost system. ⚫ Standards call for 3 direct labor hours per unit. The standard labor rate is $12 per hour. • Five pounds of material are needed per unit at a standard cost of $3.00 per pound. • Titan produces 14,500 units during the year. • Direct labor costs are $540,600 for 44,900 hours. • Titan purchases 78,000 pounds of materials at $3.20 per pound and uses 73,600 pounds (the rest remain in inventory). For direct labor, what is the efficiency (usage) variance?arrow_forwardFinancial Accounting Questionarrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning




