Managerial Accounting - Exam 6
Terms
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- Residual Income =
- Operating Income - Capital Charge
- Capital Charge =
- Average Operating Assets X Min. Rate of Return
- ROI =
- Operating Income / Avg Operating Assets
- ROI also =
- Turnover X Margin
- Asset Turnover =
- Sales / Avg Operating Assets
- ROA =
- Operating Income / Net Operating Assets
- Operating Income =
- Sales X Margin(or ROI) on Sales