Answered: Assuming that sales and expenses will…

Assuming that sales and expenses will remain unchanged, an increase in the level of assets causes the return on investment (Rol) to Decrease O Remain unchanged Be erratic and unpredictable Increase

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 21E: If sales and average operating assets for Year 2 are identical to their values in Year 1, yet...

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100%

Assuming that sales and expenses will remain unchanged, an increase in the level of assets causes the return on investment (RoI) to

Assuming that sales and expenses will remain unchanged, an increase in
the level of assets causes the return on investment (Rol) to
Decrease
Remain unchanged
Be erratic and unpredictable
Increase

Formula Formula ROI (%) = Net Income Principal Amount × 100

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