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:

+.50 Correlation

A statistical measure that indicates a moderate positive relationship between two variables, meaning as one variable increases, the other variable tends to also increase to some extent.

Longitudinal

Longitudinal refers to a type of research study or observation that takes place over an extended period, allowing for the assessment of changes and developments over time.

Ethical Soundness

The degree to which actions or decisions align with moral principles and ethical standards.

Developing Memory Skills

The process of improving the ability to encode, store, and retrieve information over time.