100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Module 3 ACCTG 225 Equations Terms in this set (23) ROI NOI / Avg. Operating Assets, tells you the profit earned per dollar invested in operating assets ROI Margin x Turnover Margin NOI / Sales Turnover Sales / Average Operating Assets Residual Inco $7.99   Add to cart

Exam (elaborations)

Module 3 ACCTG 225 Equations Terms in this set (23) ROI NOI / Avg. Operating Assets, tells you the profit earned per dollar invested in operating assets ROI Margin x Turnover Margin NOI / Sales Turnover Sales / Average Operating Assets Residual Inco

 4 views  0 purchase
  • Course
  • GED - General Educational Development
  • Institution
  • GED - General Educational Development

Module 3 ACCTG 225 Equations Terms in this set (23) ROI NOI / Avg. Operating Assets, tells you the profit earned per dollar invested in operating assets ROI Margin x Turnover Margin NOI / Sales Turnover Sales / Average Operating Assets Residual Income= Net Operating Income - (Average Oper...

[Show more]

Preview 1 out of 2  pages

  • August 5, 2024
  • 2
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • GED - General Educational Development
  • GED - General Educational Development
avatar-seller
Denyss
8/5/24, 7:26 AM




Module 3 ACCTG 225 Equations
Jeremiah
Terms in this set (23)

NOI / Avg. Operating Assets, tells you the profit earned per dollar invested in operating
ROI
assets

ROI Margin x Turnover

Margin NOI / Sales

Turnover Sales / Average Operating Assets

Net Operating Income - (Average Operating Assets x Minimum Required Rate of
Residual Income= Return), concept that investors subtract a minimum ROR from NOI to determine
whether the company met expectations

Economic Value Added: cost of capital is subtracted from a modified operating income

1. negotiated transfer prices ie segment manager meet to discuss and agree upon
transfer prices
Transfer Pricing:
2. Setting transfer prices at cost using either variable cost or full absorption cost
3. Use market price

Sellers: TP > variable cost per unit + total contribution margin lost on sales/number of
units transferred

Negotiated transfer price equations:
Buyers: TP < cost of buying from outside supplier


Buyers: TP < profit earned excluding transfer price/units sold

units company can manufacture before hitting capacity, when operating at capacity (or
Idle capacity:
beyond idle capacity), special orders/transfers must cover lost CM to be worth doing

-Traceable FC: incurred because of the existence of the segment
-Common FC: supports the operations of more than one segment but not directly
Segments:
traceable to one segment
-Segment margin= Segment CM - TRACEABLE fixed costs

Sunk cost a cost that has already been committed and cannot be recovered, not relevant

avoidable cost a cost that can be eliminated by choosing one alternative over another

opportunity cost potential benefit that is given up when one alternative is selected over another
Module 3 ACCTG 225 Equations




1/2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Denyss. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

81113 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.99
  • (0)
  Add to cart