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problem1: Which of the following statement is correct concerning return on investment computations?

[A] Turnover equals return on investment divided by margin

[B] Sales equals turnover divided by margin

[C] Margin equals stockholders' equity divided by sales

[D] Return on investment equals margin divided by turnover

problem2: Sharp firm, retailer, plans to sell 15,000 units of Product X during the month of August. If the company has 2,500 units on hand at the start of the month, & plans to have 2,000 units on hand at the end of the month, how many units of Product X must be purchased from the supplier during the month?

[A] 15,000

[B] 17,000

[C] 14,500

[D] 15,500

problem3: Using the formula in the text, if the lowest acceptable transfer price for the viewpoint of the selling division is dollar 80 and the lost contribution margin per unit on outside sales is $30, and then the variable cost per unit must be:

[A] $110

[B] $80

[C] $50

[D] $30

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M923333

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