Calculating Return on Total Assets for an Investment Center Is

question 27

Multiple Choice

Calculating return on total assets for an investment center is defined by the following formula for an investment center:

• A) Contribution margin/Ending assets.
• B) Gross profit/Ending assets.
• C) Net income/Ending assets.
• D) Net income/Average invested assets.
• E) Contribution margin/Average invested assets.

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Definitions:

Dynamic Environments

Situations or systems that are constantly changing and require adaptability and flexibility from those within them.

Organic Designs

Flexible, adaptive organizational structures characterized by decentralized decision-making, broad job descriptions, and a network of communications that encourage collaboration.

Narrow Spans Of Control

An organizational structure with a small number of subordinates reporting directly to a manager, allowing for closer supervision.

Adaptive Organizations

Entities that have the ability to adapt and transform in reaction to shifts in market environments, obstacles, and prospects.