(CMA)The Segment Operating Margin Less Imputed (Estimated)interest on the Assets

question 55

Multiple Choice

(CMA) The segment operating margin less imputed (estimated) interest on the assets used by the investment centre is known as:

• A)Return on investment
• B)Residual income
• C)Operating income
• D)Return on assets

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Definitions:

Maximizing Utility

The process of allocating resources to obtain the highest possible satisfaction or utility.

Money Income

Refers to the total income received in the form of money, including wages, salaries, and other earnings.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Purchases

The act of buying goods or services.