Give three definitions of investment used in practice when computing ROI

Q: mpute the Productivity Component indicate if

A: Working Notes :-                                             In 2020…

Q: Managers in which of the following responsibility centers are held responsible forprofits? (You may…

A: C. Profit centers is the answer

Q: ) Give an example of a department corresponding to an investment center, specifying the practical…

A: Give an examle of a department corresponding to an investment centre.

Q: Describe the relationship between capacity planning and location and their importance nto the…

A: Capacity planning and location decisions are critical to the organization's effective and smooth…

Q: Describe three key components in doing a strategic analysis of operating income.

A: Operating Income: The outcome of the deduction of operating expenses and depreciation from the gross…

Q: Choose the correct answer: The outcome of resource utilization divided by the amount of resources…

A: Manufacturing cycle efficiency helps to measure the percentage of time spent in product…

Q: Describe about the Enterprise Resource Planning. What are its objectives?

A: Enterprise Resource Planning:   It refers to a framework within an organization where the management…

Q: What are the four P's of effective software project management?

A: The four P's of effective software product management are: 1. Product 2. People 3. Process 4.Project…

Q: Discuss the importance of nonfinancial information in measuring investment-center performance.

A: Non Financial Information Non financial information refers to those aspects of business which cannot…

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: Write cost pool, cost driver, activity cost, budgeting.   What are the assumption of CVP analysis?…

A: Answer:  Write cost pool, cost driver, activity cost, budgeting.   Cost Pool is the sum total of…

Q: There are three general strategies identified as the basic co

A: Strategic Cost Management:  Strategic Cost Managemeent is the provision and analysiis of Cost and…

Q: Discuss two potential uses of the ABC cost information for decision-making, to the managers

A: Activity based costing (ABC): It is generally called ABC costing. This method is used in assigning…

Q: Discuss how the behavior of division managers is likely to be affected by the use of: a. Return on…

A: Division managers provide leadership and assistance to their team members. It provide guidance and…

Q: What are two key performance indicators used to evaluate investment centers?

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…

Q: Define total productive efficiency

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: How are joint costs allocated? Explain and analyze using numerical example.

A: Joint Costs In business different costs are incurred in the production process, but in certain…

Q: Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment)…

A:

Q: The design and use of strategic cost management systems are oriented around the application of three…

A: Strategic cost management is defined as the cost management which is a procedure for decreasing the…

Q: Define and give examples of the following terms: cost center, revenue center, profit center, and…

A: Responsibility center: It refers to that unit of the organization for which a separate executive is…

Q: What is the relationship between contribution margin and responsibility margin? Explain how each of…

A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…

Q: Discuss the importance of measuring and managing marketing return on investment?

A: Marketing return on investment is refer as the return on investment generate from marketing…

Q: State which performance perspective each strategic objective should fall under, and suggest at least…

A:

Q: Define standard costs and briefly indicate how they may beused by management in planning and…

A: Standard costs: Standard costs are the per-unit cost that is expected to be incurred under normal…

Q: Demonstrate and compare how return on investment and residual income are used to assess the success…

A: It essentially refers to the average return on an investment over a certain period. It's pretty…

Q: Value chain classifications Match each of the following cost items with the value chain business…

A: Value Chain Analysis is an inbound logistics that includes a range of activities like receiving,…

Q: What is the most significant drawback of utilizing ROI to assess investment centers?

A: Return on Investment:  The investment opportunity with the most significant rate of Return is…

Q: Classify the following fixed costs as normally being either committed or discretionary:f. Management…

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Which of the following is not among the main uses of Activity-Based-Management ABM Select one: O a.…

A: Activity Based Management is a method or procedure of analysing profitability of the company by…

Q: Classify the performance measures below into the most likely balanced scorecard perspective towhich…

A: Balance Scorecard is used in strategic management to measure the performance by ascertaining…

Q: Explain the Role of life cycle costing in improving organisational performance

A: Life cycle costing: It refers to the lifetime costs that is incurred on an item or an asset over its…

Q: Show and compare how return on investment and residual income are used to evaluate the performance…

A: Introduction: It refers to the average return on an investment over a specific period. It's…

Q: Explain the difference between resource spending and resource usage.

A: Resources: Resources are the economic elements that enable people to carry out activities. A…

Q: Discuss how using the rate of return on investment (ROI), as an evaluation tool, helps facilitate…

A: Lets first understand the meaning of rate of return on investment. Rate of return on investment is a…

Q: Describe three different ways in which managers determine cost behavior, which do you think is most…

A: Cost behavior analysis: It is the investigation of how certain expenses carry on in a business.…

Q: valuate the key elements of a human resource management strategy.

A: HRM strategy is a plan that lead to the implementation of a company's human resources department's…

Q: Which responsibility center's manager would be most concerned about the segment's return on…

A: the responsible center is the organizational unit that is being headed by the manager. generally, a…

Q: Define research and development and what are its representative cost driver?

A: Cost drivers: It refers to the object or things which affect the costs of a business. For example,…

Q: Value Chain Analysis

A: Value chain analysis is a process in which an entity continuously identifies the areas and…

Q: Describe the two ways ROI can be calculated.

A: ROI stands for return on investment which means the return which is expected from the investment…

Q: How Absorption and Variable Costing, Budgeting and Responsibility Accounting are connected?

A: Answer: Absorption and Variable Costing, Budgeting and Responsibility Accounting  There is…

Q: Explain the concept of a product family and its relationship to value stream accounting.

A: Product family is the grouping of same kind of product and services which go through the same…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.