If Divisional Income from Operations Is $100,000, Invested Assets Are

question 167

True/False

If divisional income from operations is $100,000, invested assets are $850,000, and the minimum rate of return on invested assets is 8%, the residual income is $68,000.

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Definitions:

Demotion

The act of reducing an employee's rank or position, usually as a result of performance issues or organizational restructuring.

Law Of Contingent Reinforcement

The principle that a reward should be given only when a desired behaviour occurs.

As Soon As Possible

A phrase indicating urgency, requesting that a task or action be completed in the shortest amount of time reasonably achievable.

Law Of Contingent Reinforcement

This law states that the effectiveness of a reinforcement depends on how consistently and immediately it follows the desired behavior.