Which statement is true regarding divisional performance? O If a division's return on investment is less than its margin, then the division's sales are greater than its average operating assets. O A reduction in selling and administrative expenses increases a division's margin but does not increase its return on investment if the division's turnover is less than one. O If a division's return on investment is greater than its margin, then the division's sales are less than its average operating assets. O An increase in labor costs will reduce a division's margin and its return on investment even if the division's vision turnover is less than one.
Which statement is true regarding divisional performance? O If a division's return on investment is less than its margin, then the division's sales are greater than its average operating assets. O A reduction in selling and administrative expenses increases a division's margin but does not increase its return on investment if the division's turnover is less than one. O If a division's return on investment is greater than its margin, then the division's sales are less than its average operating assets. O An increase in labor costs will reduce a division's margin and its return on investment even if the division's vision turnover is less than one.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 44MCQ: When a Dupont analysis reveals that a company has much higher than average asset turnover and much...
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