Divide by the Shortcut Method: 1,500 ÷ 50

question 54

Short Answer

Divide by the shortcut method: 1,500 ÷ 50

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Definitions:

Gross Cost

The total cost incurred before any deductions or allowances.

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, excluding investment and non-operational assets.

Return On Investment (ROI)

Net operating income divided by average operating assets. It also equals margin multiplied by turnover.

Depreciation

The systematic allocation of the cost of an asset over its useful life.