What is return on investment, and how is it calculated?

Q: How are effective improvement of return on investment in Zara company

A: The acronym ROI stands for return on investment. It is defined as the return obtained from the…

Q: What is return on marketing investment (rOMI)? howdoes considering marketing as an investment…

A: Return on marketing expenditure, or ROMI, is an indicator utilized to evaluate the success of a…

Q: Which of the following explains why managers compare the budgeted costs to actual costs?   a.…

A: Managers measures budgeted expenses at the end of the year and provide an average of the costs that…

Q: Most organizations use residual income instead of return on investment (ROI) as a performance…

A: The Following statement is True because Residual Income is much better than Return on Investment…

Q: What questions should managers answer when considering selling a product as is or processing…

A: Sell or process further decision rule: Sell or process further decision rule states that "if the…

Q: What is the major shortcoming of using operating income as a performance measure for investment…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: What is the fundamental flaw in utilizing income from operations as a success metric for investment…

A: Introduction: Investment centers are companies that make investments to boost their profits.

Q: Explain the concept of a contribution margin and describe how it differs from gross margin. Also,…

A: Contribution Margin represents the incremental money generated for each product/unit sold after…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planning…

A: Contribution margin is the sales revenue of the business after deduction of variable costs from…

Q: What is the primary disadvantage of utilizing revenue from operations to evaluate investment…

A: Investment centers are businesses that invest in other companies to boost their profits.

Q: What variable affecting gross profit should the manager focus his attention? Why?

A: Gross Profit is the profit arrived at by deducting cost of goods sold from the turnover or the…

Q: “A financial productivity measure contains more information than an operational productivity measure…

A: Introduction: Operational productivity is the ratio of output units to input units, and physical…

Q: Why might an analyst incorporate the industry-market-size factor and the interrelationships among…

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

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: What is value-chain analysis? What role does it play in strategic cost analysis?

A:

Q: Wouldn't it be beneficial for the company if both investment turnover and return on investment are…

A: Ratio analysis is the measure through which company is able to take decision for the future policies…

Q: How might managerial incentives affect the analysis of earnings persistence?

A: Analysis of earnings persistence Earning persistence which was indicating that the total earning…

Q: How does the cost system affect the financial position of the firm?

A: Cost system is the system which is designed to evaluate the monitor the cost incurred by the…

Q: Why do managers need to know the cost of their products?

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: Explain and give an example as to how a manager can manipulate the return on investment figure in…

A: Return on Investment The profit or loss received by an investor on investing a particular amount in…

Q: What is a major shortcoming of just using Income from Operations as a performance measure for…

A: Income from operations states the results of deducting the operating expenses from the gross profit.…

Q: What is the major shortcoming of using income from operations as a performance measure for…

A: Investment centre are who do investment of organisation to increase income.

Q: What is an operational productivity measure and a financial measure?

A:

Q: What is meant by customer-profitability analysis? Give an example of an activity that might be…

A: Customer Profitability Analysis:  It is the process of ascertaining the amount of revenue earned…

Q: Define productivity.

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: Explain how a CVP analysis would be useful for determining whether the investment is worth it. Also,…

A: Cost value analysis (CVP) determines how the changes in costs and volume affects operating income…

Q: What is the major shortcoming of using income from operations as a performance measure for…

A: Investment center: A department or unit or division of a corporation where its manager is assigned…

Q: What profit-based pricing approach should a manager use if he or she wants to reflect the percentage…

A: Profit grounded pricing strategy is the approach which involves setting the prices for the product…

Q: Which of the followings is NOT an advantage of financial institutions in consumption smoothing? A.…

A: Financial Institutions Institutions involved in financial transactions such as lending and borrowing…

Q: components of the Contribution Margin Income Statement, how does management use this in the decision…

A:

Q: Do starting entrepreneurs need to have basic knowledge about cost volume profit analysis?

A: Cost volume profit analysis is also known as "Break-Even" analysis. This is an important aspect of…

Q: disadvantage of utilizing income from operations as a performance indicator

A: Income from operations means the excess of revenues from business operations than cost of conducting…

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.