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ACCT4 Chp 11
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Delimiter between question and answer:

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  • Each line maps to a question.
  • If the delimiter is used in a question, the question should be surrounded by double quotes: "My, question","My, answer"
  • The first answer in the multiple choice question must be the correct answer.






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Sales divided by average operating assets.
Turnover
A department that does not directly engage in operating activities; rather, it provides services or assistance to the operating departments.
Service department
Net operating income divided by average operating assets. It also equals margin multiplied by turnover.
Return on investment (ROI)
Any business segment whose manager has control over costs, revenues, or investments in operating assets.
Responsibility center
The net operating income that an investment center earns above the minimum required return on its operating assets.
Residual income
A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.
Profit center
A department in which the central purposes of the organization are carried out.
Operating department
Cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes.
Operating Assets
Net operating income divided by sales.
Margin
A business segment whose manager has control over cost, revenue, and investments in operating assets.
Investment center
An organization in which decision-making authority is not confined to a few top executives but rather is spread throughout the organization.
Decentralized organization
A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.
Cost center