Two Divisions of Oregano Company (Divisions TX and OY) Have

question 42

Multiple Choice

Two divisions of Oregano Company (Divisions TX and OY) have the same profit margins. Division TX's investment turnover is larger than that of Division OY
(1) 2 to 1.0) . Income from operations for Division TX is $55,000, and income from operations for Division OY is $43,000. Division TX has a higher return on investment than Division OY by

• A) using income from operations as a performance measure
• B) comparing the profit margins
• C) applying a negotiated price measure
• D) using its assets more efficiently in generating sales

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Definitions:

Cheques

Written orders to banks to pay a specific amount of money from the writer's bank account to the person or entity named on the cheque.

Daily Interest Rate

Daily Interest Rate refers to the percentage of interest that is calculated on a daily basis for financial products like loans or savings accounts.

Cheques

Documents that are written, dated, and signed, instructing a bank to pay a particular amount of money either to the holder or to an individual named in the document.

Daily Interest Rate

The rate at which interest accumulates on a financial instrument on a daily basis, often used for savings accounts, loans, and credit cards.