Target annual operating income is divided with invested capital to calculate
A. target rate of return on investment
B. operating income per unit
C. operating cost per unit
D. cost of goods sold
Answer: Option A
Solution(By Examveda Team)
Target annual operating income is divided with invested capital to calculate target rate of return on investment. A rate of return (RoR) is the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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