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Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
Edition 5ISBN: 0073526940Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
Edition 5ISBN: 0073526940 Exercise 30
Return On Investment (ROI); Comparisons of Three Investment Centers (Divisions) Required Fill in the blanks:
|
| Division |
|
| X | Y | Z |
Sales | $1,500,000 | $750,000 | $ |
Operating Income | 150,000 | 75,000 |
|
Investment (assets) | 600,000 |
| 2,500,000 |
Return on sales |
|
| 0.5% |
Asset turnover |
|
| 1.5 |
Return on investment |
| 1% |
|
Step-by-step solution
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Step 1 of 5
Return on Investment:
Return on investment describes that it is the ratio that lies between net earnings and cost of investment. The high the return on investment the better it is and if the lower the return on investment the worse it is.
Step 2 of 5
Step 3 of 5
Step 4 of 5
Step 5 of 5
Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
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