Indicate Whether Each of the Following Statements Is True or False

question 122

Short Answer

Indicate whether each of the following statements is true or false.
A responsibility accounting system is useful for controlling operations but not for evaluating the performance of managers.______
Return on investment is usually calculated by dividing operating income by operating assets.______
Many businesses use the return on investment of departments and other segments in deciding how to allocate resources within the company.______
The use of return on investment to allocate resources within an organization is unlikely to motivate segment managers to improve performance.______
Return on investment for a division should be calculated based on factors the division manager can control.______

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Definitions:

Coal Deposits

Natural accumulations of coal, which is a combustible black or brownish-black sedimentary rock used primarily for electricity generation and steel production.

Political Economy

An interdisciplinary branch that studies the relationships between individuals, governments, and public policy, focusing on the economic implications of political actions.

Adam Smith

A Scottish economist, philosopher, and author known for his theories on free market economics presented in his book "The Wealth of Nations."

Invisible Hand

A metaphor introduced by economist Adam Smith to describe the self-regulating behavior of the marketplace, where individuals acting in their own self-interest inadvertently benefit society at large.