Home Decor Inc

question 23

Multiple Choice

Home Decor Inc., 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 2015:

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) 0.25; 0.67
• B) 0.42; 0.52
• C) 0.52; 0.47
• D) 0.46; 0.25

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Definitions:

Information Processing Approach

A psychological framework that considers how humans process, store, and retrieve information, analogous to computer operations.

Human Mind

The collective aspects of intellect, consciousness, and emotions that constitute the mental capabilities of a person.

Computer

An electronic device capable of processing, storing, and retrieving data, executing a wide range of tasks according to instructions.

Muscular Systems

The system in the human body that enables movement of the body and maintains posture, comprising of all the muscles.