ACC 241 - Exam 3 CH 9, 10, 11 Practice Questions and Answers
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Course
Accounting 241
Institution
Accounting 241
ACC 241 - Exam 3 CH 9, 10, 11 Practice
Questions and Answers
Budgeting assists management in which of the following areas? - ️️ Correct--
Motivation
-Planning and setting objectives
-Performance measurement
Which of the following is an advantage of the budgeting process? - ️️ Correct-...
investment (ROI) of his segment? - ✔️✔️Correct-Investment center
A company has computed that their "margin" is .18. Which of the following statements is
the best interpretation of these results? - ✔️✔️Correct-$.18 of every $1 made in sales is
profit
A positive result that stems from the use of return on investment (ROI) is that it
encourages managers to focus on - ✔️✔️Correct--The relationship among sales,
expenses, and investment
-Operating asset efficiency
-The efficient use of resources in generating income
-Cost efficiency
Division A had ROI of 15% last year. The manager of Division A is considering an
additional investment for the coming year. What step will the manager likely choose to
take? - ✔️✔️Correct-Reject the investment if it returns less than 15% ROI
Which of the following is a disadvantage of a focus on return on investment? -
✔️✔️Correct-It can produce a narrow focus on divisional profitability at the expense of
profitability for the overall firm
If the ROI of a project is greater than the target rate of return, the residual income will be
- ✔️✔️Correct-Greater than zero
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