Purchase Solution

Return on investment and variable costings

Not what you're looking for?

Ask Custom Question

11) Company A's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.

A. 75%
B. 93.75%
C. 18.75%
D. 46.88%

12) When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.

A. component of cost of goods sold
B. fixed expense
C. production-volume variance
D. component of gross profit

13) In absorption costing, costs are separated into the major categories of _____.

A. manufacturing and nonmanufacturing
B. manufacturing and fixed
C. fixed and variable
D. variable and nonmanufacturing

14) _____ is another term for variable costing.

A. Full costing
B. Direct costing
C. Traditional costing
D. Absorption costing

Purchase this Solution

Solution Summary

Solution discusses return on investment

Solution Preview

1) Company A's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, ...

Purchase this Solution


Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.