Selected Data from Chering Division's Accounting Records Revealed the Following

question 43

Multiple Choice

Selected data from Chering Division's accounting records revealed the following:
$\begin{array}{lcc}\text { Sales } & \$ 825,000 \\\text { Average investment } & \$ 440,000 \\\text { Net operating income } & \$ 66,000 \\\text { Minimum rate of return (divisional cost of capital) } & 14 \%\end{array}$ Chering Division's residual income (RI) is:

• A)$4,400.
• B)$8,800.
• C)$9,240.
• D)$22,380.
• E)$49,500.

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Definitions:

Operating Expenses

Expenditures that a business incurs through its normal business operations.

Human Resource Strategy

A plan of action designed to achieve a company's objectives by effectively managing and deploying its human resources.

Micro-Business

A small business typically characterized by having fewer than 10 employees, often operating with a low capital investment and in a localized market.

HR Related Tasks

Activities and responsibilities associated with the human resources department, including recruitment, compensation, performance evaluations, and employee relations.