Indicate Whether Each of the Following Statements Is True or False

question 122

Short Answer

Indicate whether each of the following statements is true or false.
A responsibility accounting system is useful for controlling operations but not for evaluating the performance of managers.______
Return on investment is usually calculated by dividing operating income by operating assets.______
Many businesses use the return on investment of departments and other segments in deciding how to allocate resources within the company.______
The use of return on investment to allocate resources within an organization is unlikely to motivate segment managers to improve performance.______
Return on investment for a division should be calculated based on factors the division manager can control.______

Identify the calculation and interpretation of return on assets.

Recognize the principles of financial accounting and reporting.

Comprehend the importance of cash flow management and its relation to operating, investing, and financing activities.

Understand the role of accounting in decision-making for internal users.

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Definitions:

Tantrums

Emotional outbursts of anger and frustration, commonly seen in toddlers as a way of expressing their feelings.

Suspicious

Characterized by or inclined to suspect something wrong without having evidence.

Environment

The surrounding physical, biological, social, and cultural context in which an organism or community lives, influencing development and behavior.

Daycare Center

A facility that provides care and education for young children during the day while their parents are at work or otherwise engaged.