In Computing ROI Land Held for Future Use

question 125

Multiple Choice

In computing ROI land held for future use

• A) will hurt the performance measurement of an investment center's manager.
• B) is important in evaluating the performance of a profit center manager.
• C) is included in the calculation of operating assets.
• D) is considered a nonoperating asset.

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Definitions:

Linear Programming

A mathematical method used to find the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Constraint

A limitation or restriction in a process, system, or activity that affects its performance or capacity.

Objective Function

A mathematical function used in optimization to define the goal of the operation, such as maximizing profit or minimizing cost.

Maximize Contribution

An objective often pursued in business to enhance the difference between total revenues and total costs, thereby increasing profitability.