The Auto Division of Big Department Store Had a Net

question 8

Multiple Choice

The Auto Division of Big Department Store had a net income of $560,000,a net asset base of $4,000,000,and a required rate of return of 12 percent.Sales for the period totalled $3,000,000.What is the residual income for the period?

• A)$80,000
• B)$120,000
• C)$360,000
• D)$480,000

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Definitions:

Appraisal Rating

The evaluation or grading given to an employee based on their performance, often influencing promotions, pay raises, or development plans.

Scale Points

Marks or intervals on a scale used for assessment or measurement, such as in salary grades or performance evaluations.

Automatically Focusing

A system or mechanism's ability to adjust its focus or attention without human intervention, often used in cameras, telescopes, and other devices.

Performance Appraisal

The systematic evaluation of an employee's job performance and productivity in relation to pre-established criteria and organizational objectives.