Return on Investment (ROI) Definition
Abida Rehman Return on Investment (ROI) Definition: Net operating income divided by average operating assets. It also equals margin multiplied by turnover.
Variable Costing System
Sana Ahmed Variable Costing System A Decision Making Tool for Management: After studying this chapter you should be able to: Explain how variable costing differs from absorption costing and compute unit product…
Return on Investment (ROI) Method for Measuring Managerial Performance
Return on Investment (ROI) Method for Measuring Managerial Performance: In a truly decentralized company, segment managers are given a great deal of autonomy. Profit and investment centers are virtually independent…
Operating Leverage and Degree of Operating Leverage (DOL)
Definition and Explanation of Operating Leverage: A lever is a tool for multiplying force. Using a lever, a massive object can be moved with only a modest amount of force.…
Cost Volume Profit (CVP) Formulas
Cost Volume Profit (CVP) Formulas: Contribution margin = Sales - Variable expenses (manufacturing and non-manufacturing) Net operating income = Contribution margin - Fixed expenses (manufacturing and non manufacturing) Contribution margin…
Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis
Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis: Learning Objectives: Define and explain contribution margin. Prepare a contribution margin format income statement. What are the advantages of calculating…