The Following Information Relates to the Operating Performance of Three

question 116

Essay

The following information relates to the operating performance of three divisions of Paul,Inc.for last year.

Required:
a.Compute the rate of return on investment (ROI)of each division for last year.
b.Assume that the firm levies a charge on each division for the use of funds.The charge is 10 percent on investment,and the accounting system deducts it in measuring divisional net income.Recalculate ROI using divisional net income after deduction of the use-of-funds charge in the numerator.
c.Which of these two measures do you think gives the better indication of operating performance? Explain your reasoning.

Comprehend the importance and global recognition of ISO certification in quality standards.

Understand the concept and practical applications of evidence-based management.

Recognize the contingency approach to management and its adaptability according to individual and situational needs.

Identify the role of evidence-based management in decision-making processes.

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Definitions:

Alleviate Poverty

Efforts and policies designed to reduce or eliminate poverty in a population.

Socioeconomic Group

A socioeconomic group is a segment of society classified according to a combination of factors such as income, occupation, and education, which typically influences people’s lifestyle, behavior, and attitudes.

Informal Economy

Economic activities that occur outside of government regulation or taxation systems.

Benefit Corporation (B-Corp)

A legal entity explicitly organized with an additional focus beyond making money.