When Calculating Return on Net Operating Assets It May Be

question 52

True/False

When calculating return on net operating assets it may be necessary to adjust assets to reflect the fact that not all assets are operating assets.

Analyze departmental performance based on various financial metrics such as net income, profit margin, and return on investment.

Apply cost allocation principles to hypothetical expansions and assess their impact on departmental income statements and company overhead.

Understand and apply the concept of responsibility accounting and its impact on cost control and managerial performance evaluation.

Compute and understand the cash conversion cycle and its importance in managing working capital.

---

Definitions:

Tax Burden

The measure of taxes that an individual or business must pay out of their income or profit.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare among entities in the market.

Imported Wine

Wine that is produced in one country and then shipped to and sold in another country.

Regressive

A term describing a tax imposed in such a manner that the rate decreases as the amount subject to taxation increases.