User Account

All Pages

Identify the method for calculating profitability

Assignment Help Cost Accounting
Reference no: EM13550373

ROI, RI, measurement of assets. (CMA, adapted) Carter Corporation recently announced a bonus plan to be awarded to the manager of the most profitable division. The three division managers are to choose whether ROI or RI will be used to measure profitability. In addition, they must decide whether investment will be measured using gross book value or net book value of assets. Carter defines income as operating income and investment as total assets. The following information is available for the year just ended:

2222_Method for calculating profitability.PNG

Carter uses a required rate of return of 10% on investment to calculate RI.

Each division manager has selected a method of bonus calculation that ranks his or her division Number 1. Identify the method for calculating profitability that each manager selected, supporting your answer with appropriate calculations. Comment on the strengths and weaknesses of the methods chosen by eachmanager.

Reference no: EM13550373

Questions Cloud

Devise a vertical alignment to connect the tunnel and bridge : An engineering mistake has resulted in the need to connect an already constructed tunnel and bridge with a vertical curve. The profile of the bridge and tunnel is given in the figure below
Calculate consolidated net income for 2011 : Calculate the goodwill that should appear in the consolidated balance sheet of Pin and Subsidiary at December 31, 2011 and calculate consolidated net income for 2011.
Determine the acceleration of the automobile immediately : A motorist is traveling on a curved section of highway of radius 2500ft at the speed of 60 mi/hr. the motorist suddenly applies the brakes, causing the automobile to slow down at a constant rate. knowing that after 8 sec the speed has been reduced to..
What is the concentration in kilograms of carbon per cubic : The concentration of carbon in an iron-carbon alloy is 0.15 wt%. What is the concentration in kilograms of carbon per cubic meter of alloy?
Identify the method for calculating profitability : Identify the method for calculating profitability that each manager selected, supporting your answer with appropriate calculations. Comment on the strengths and weaknesses of the methods chosen by eachmanager.
Determine the velocity of the box 2 seconds later : A 20 kg box is on an upward inclined surface of 30 degrees from the floor. the velocity of the box is zero when it is subjected to a constant horizontal force F=30N. assuming the surface is smooth,
What amount should be reported by ruse inc : What amount should be reported by Ruse Inc. as cash provided by operating activities in the statement of cash flows
Determine the minimum do at any point downstream : The Big Bear town council has asked that you determine whether the discharge of the town's wastewater into the Salmon River will reduce the DO below the state standard of 5.00 mg/L at Little Bear, 5.79 km downstream
How many yards of borrow will be required to complete : An embarkment will be constructed with the soil compacted to 95 percent of the max dry density. the borrow material, is deposited at a uniform density of 75 percent of the max dry density. the roadway embankment will require 75,000 cubic yards of fil..

Reviews

Write a Review

Cost Accounting Questions & Answers

  Accrual concept and revenue recognition and matching

Concepts and conventions used in Accounting. In your explanation, discuss the implications or limitations of these practices when reading Financial statements and Business Entity concept

  Determine net cash flow from operations

Determine net cash flow from operations

  Prepare easy fictitious financial statements

Evaluate the detail information - Prepare easy fictitious financial statements and write notes for the fictitious annual report.

  Evaluate the balance in the right-of-use asset

The interest rate charged the lessee was 10 percent. Under the new ASU, the balance in the right-of-use asset after 2 years will be:

  Overall profitability of the company

Economics of the two export proposals giving your recommendations as to which proposal should be accepted - statement showing the overall profitability of the company after incorporating the export proposal recommended by you.

  Gain realized on the sale of the assets

The gain realized on the sale of the assets and the balances in the partners-2019 capital accounts after the distribution of this gain or loss to the capital accounts.

  Discuss the merits of steves proposal

Therefore it doesn"t make good sense to have to expense it as it is incurred. Besides, if we capitalize it as goodwill, we won"t have to amortize it, and this will boost reported income." Discuss the merits of Steve"s proposal.

  For each of the subsequent independent cases evaluate the

for each of the subsequent independent cases evaluate the units or equivalent units requested assuming weighted-average

  During 2011 the following selected events and transactions

during 2011 the following selected events and transactions were recorded by nichols county hospital.1.gross charges for

  Explain operating & cash budget

Forecasting is predicting the outcome of events. It is an essential starting point for budgeting. Budgeting is planning for a result and controlling to accomplish that result.

  Ip ltd reports the subsequent intangible assetspatents at

ip ltd reports the subsequent intangible assetspatents at directors valuation 160 millionless accumulated amortisation

  Product gallons sales value cost after final

Product Gallons Sales value Cost after Final - Number of gallons and round percentages to one decimal place i.e. 25.5% or .255.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd