Use the Table for the Question(s)below

question 92

Multiple Choice

Use the table for the question(s) below.
Luther Corporation Consolidated Income Statement Year ended 30 June (in $ millions)

-Refer to the income statement above. Luther's return on assets (ROA) for the year ending 30 June 2018 is closest to:

• A)8.4%
• B)12.7%
• C)2.0%
• D)6.5%

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Definitions:

Differential Cost

The difference in total cost that will result from selecting one alternative over another in decision-making situations.

Alternatives

Various options or choices available in a decision-making process.

Relevant Costs

Costs that will be affected by a decision and are future-oriented.

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.