Two Divisions of Central Company (Divisions X and Y) Have

question 50

Multiple Choice

Two divisions of Central Company (Divisions X and Y) have the same profit margins. Division X's investment turnover is larger than that of Division Y (1.2 to 1.0) . Income from operations for Division X is $55,000, and income from operations for Division Y is $43,000. Division X has a higher return on investment than Division Y by:

• A) using income from operations as a performance measure
• B) comparing the profit margins
• C) applying a negotiated price measure
• D) using its assets more efficiently in generating sales

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Definitions:

Ego

In psychology, a component of Sigmund Freud's personality theory, the ego represents the rational part of the psyche that mediates between one's desires and the realities of the external world.

Superego

In Freudian psychoanalysis, the part of the personality that represents internalized ideals and provides standards for judgment.

Magnetic Resonance Spectroscopy

A noninvasive diagnostic technique that allows for the measurement and analysis of chemical concentrations in the brain and other parts of the body.