Related Mcqs:

1. The target annual operating income is divided with invested capital to calculate _____________?

   A. target rate of return on investment
   B. operating income per unit
   C. operating cost per unit
   D. cost of goods sold

2. If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be ___________?

   A. $27,000
   B. $26,000
   C. $24,000
   D. $25,000

3. The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate ___________?

   A. expected indirect cost rate
   B. expected direct cost rate
   C. budgeted indirect cost rate
   D. budgeted direct cost rate

4. If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be ____________?

   A. $15
   B. $12
   C. $16
   D. $18

5. The sum of returned working capital and net initial investment is divided by 2 to calculate ____________?

   A. increase in operating income
   B. average investment over five years
   C. average capital invested
   D. average rate of return

6. The fixed cost is added to target operating income and then divided to contribute margin per unit to calculate _________?

   A. quantity of units required to sold
   B. selling of units
   C. sold units
   D. contributed units

7. The contribution margin is divided to operate income to calculate ______________?

   A. degree of operating leverage
   B. degree of change
   C. degree of change in margin
   D. degree of change in income

8. An operating income is divided by the revenues to calculate ______________?

   A. residual income
   B. return on after-tax operating income
   C. return on sales
   D. return on investment

9. In an accounting measurement, income and investment is divided to calculate _________?

   A. return on sales
   B. investment turnover
   C. residual income
   D. return on investment

10. The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate _____________?

    A. target net cost
    B. target net income
    C. target net gain
    D. target net loss