responsibilityaccountingtransferpricing(編輯修改稿)
2025-03-17 21:41 本頁(yè)面
【文章內(nèi)容簡(jiǎn)介】 ger would you invest in this project? Criticisms of ROI As division manager, I wouldn’t invest in that project because it would lower my pay! Criticisms of ROI Gee . . . I thought we were supposed to do what was best for the pany! Residual Ine Another Measure of Performance Net operating ine above some minimum return on operating assets Residual Ine ?A division of Zepher, Inc. has average operating assets of $100,000 and is required to earn a return of 20% on these assets. ?In the current period the division earns $30,000. Let’s calculate residual ine. Residual Ine O p e r a t i n g a s s e t s 1 0 0 , 0 0 0$ R e q u i r e d r a t e o f r e t u r n 20%R e q u i r e d r e t u r n 2 0 , 0 0 0$ A c t u a l r e t u r n 3 0 , 0 0 0$ R e q u i r e d r e t u r n ( 2 0 , 0 0 0 ) R e s i d u a l i n c o m e 1 0 , 0 0 0$ Motivation and Residual Ine Residual ine encourages managers to make profitable investments that would be rejected by managers using ROI. Company A39。s return on investment (ROI) is: A) 36%. B) 20%. C) 15%. D) 4%. The following information is available on Company A: Sales $900,000 Net operating ine 36,000 Stockholders39。 equity 100,000 Average operating assets 180,000 Minimum required rate of return 15% The following data are available for the South Division of Redride Products, Inc. and the single product it makes: Unit selling price $20 Variable cost per unit $12 Annual fixed costs $280,000 Average operating assets $1,500,000 How many units must South sell each year to have an ROI of 16%? A) 240,000. B) 1,300,000. C) 65,000. D) 52,000. All other things equal, a pany39。s return on investment (ROI) would generally increase when: A) sales decrease. B) average operating assets increase. C) operating expenses increase. D) operating expenses decrease. TRANSFER PRICING A transfer price is the price charged w
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