1. The following data is available for an investment centre.Controllable profit $40,000
Controllable assets $200,000
Calculate the ROI.
2. Which of the following is the objective of a service providing organization?
3. AG PLC has 3 departments. The details are as follows;Department A B C
Profit $50,000 $120,000 $70,000
Net assets $400,000 $600,000 $800,000
Using the ROI to evaluate the performance, which department has been the most successful?
4. An investment centre has a profit of $900,000 and controllable assets of $8,000,000. The notional cost of capital is 10%. What is the residual income for this centre?
5. Which of the following is an advantage of using ROI to measure performance?