As the Staff Accountant for Investment Centers Beta and Gamma

question 98

Essay

As the staff accountant for Investment Centers Beta and Gamma, compute the residual income for each investment center, using the following information:
$\begin{array}{lrr} & \text { Beta } & \text { Gamma } \\\text { Operating income } & \$ 850,000 & \$ 1,000,000 \\\text { Actual ROI } & 28 \% & 49 \% \\\text { Desired ROI } & 32 \% & 35 \% \\\text { Assets invested } & \$ 585,000 & \$ 750,000 \\\hline\end{array}$

Understand the importance and function of policies and procedures in organizational operations.

Identify the role of top-level, middle-level, and lower-level management in long-range planning.

Distinguish between procedures and policies and their application in organizational settings.

Recognize the significance of standing plans and their applications.

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Definitions:

Paraphilic Disorder

A paraphilia that is currently causing distress or impairment to the individual, or a paraphilia that causes personal harm, or risk of harm, to others when acted upon.

Zoophilia

A paraphilia involving a sexual fixation on non-human animals.

Erotophilia

A personality trait characterized by a positive emotional response to sexuality and sexual stimuli.