Answer the Following Questions Using the Information Below

question 81

Multiple Choice

Answer the following questions using the information below:
Ruth Cleaning Products manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 20X5:
The company is currently using a 15% required rate of return.
-What are Bleach's and Cleanser's return on investment based on book values, respectively?

• A)0.22; 0.67
• B)0.42; 0.52
• C)0.52; 0.42
• D)0.67; 0.22

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Definitions:

Depreciation Rates

The rate at which an asset loses its value over time, often used for accounting and tax purposes to reflect the wear and tear, aging, or obsolescence of physical or intangible assets.

Opportunity Costs

The burden of missing out on the subsequent optimal choice during the selection process.

Technological Advances

Innovations and improvements in technology that increase productivity, efficiency, or bring about new products or ways of doing things.

Entrepreneurial Ideas

innovative concepts or proposals that can be developed into profitable business ventures by identifying and fulfilling market needs or solving problems.