If Controllable Margin Is $300000 and the Average Investment Center

question 64

Multiple Choice

If controllable margin is $300000 and the average investment center operating assets are $2000000 the return on investment is

• A) .67%.
• B) 6.66%.
• C) 20%.
• D) 15%.

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Definitions:

Service Department Cost

Costs associated with departments that do not directly produce goods but provide essential support services within a company.

Super Division

A unit or segment within a larger organization that exceeds normal expectations or performances.

Service Department Allocations

The process of distributing indirect costs from service departments to producing departments based on their usage of services.

Service Department Allocations

The process of distributing the costs of service departments to producing or operating departments based on their usage of services.