Search for notes by fellow students, in your own course and all over the country.

Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.

My Basket

Buy These Notes

You have nothing in your shopping cart yet.

Title: Divisional Performance (ROI and RI) - Comprehensive examples
Description: Comprehensive notes on the topic "Divisional Performance" from the module Managerial Accounting at Kingston University. Year at University: 3rd (Level 6) COVERS: Return on Investment (ROI) Residual Income (RI) - Advantages and disadvantages - Formulae and calculations - Exam questions and answers - Comments and explanations
Buy These NotesPreview

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

'&/+)
,01234)54)"460718041)9,%":)
•

!"#$%#$%&%$#'#(&)%'*&$+)*%,-%
...
/O%8-)%,"*%3#6#$#-5<%
J< P,&,*%&59%&33#,#-5&(%#58-)'&,#-5%,"&,%?-+(3%2*%+$*8+(%?"*5%*$,#'&,#5A%,"*%
...
/O%'#A",%2*%'*&$+)*3%&$%IJK>LLLQINRJ>LLL%S%NT• W-?*6*)>%$+44-$*%,"&,%,"*%7*5,)*%'&5&A*)%"&$%5-%)*$4-5$#2#(#,9%8-)%3*2,%7-((*7,#-5<%O5%,"#$%
$#,+&,#-5%#,%7&5%2*%&)A+*3%,"&,%,"*%7*5,)*%'&5&A*)%#$%5-,%)*$4-5$#2(*%8-)%,)&3*%)*7*#6&2(*$%
&53%,"*%7*5,)*%0&4#,&(%*'4(-9*3%?-+(3%2*%INNJ>LLL<%#<*%DINRJ>LLL%X%IYL>LLLE%
• O8%,"*%&2-6*%&$$+'4,#-5%#$%+$*3>%
...
/01%?"#7"%#$%8)*@+*5,(9%+$*3%,-%&$$*$$%
-6*)&((%2+$#5*$$%4*)8-)'&57*<%
• =$%&%)*(&,#6*%'*&$+)*%#,%*5&2(*$%7-'4&)#$-5$%,-%2*%'&3*%?#,"%3#6#$#-5$%-)%7-'4&5#*$%-8%
3#88*)*5,%$#[*$<%
• O,%7&5%2*%2)-:*5%3-?5%#5,-%$*7-53&)9%)&,#-$%8-)%'-)*%3*,&#(*3%&5&(9$#$>%#<*<%4)-8#,%'&)A#5%&53%
&$$*,%,+)5-6*)<%
%
!A7• O,%'&9%(*&3%,-%39$8+57,#-5&(%3*7#$#-5%'&:#5A>%* ...
/O%-8%JZV>%&$%,"#$%?-+(3%3#(+,*%#,$%7+))*5,%8#A+)*<%
W-?*6*)>%,"*%JZV%
...
/O%#57)*&$*$%?#,"%,"*%&A*%-8%,"*%&$$*,%#8%CFG$%&)*%+$*3>%,"+$%A#6#5A%'&5&A*)$%&5%#57*5,#6*%
,-%"&5A%-5%,-%4-$$#2(9%#5*88#7#*5,>%-2$-(*$7*5,%'&7"#5*$<%
• O,%'&9%*57-+)&A*%,"*%'&5#4+(&,#-5%-8%4)-8#,%&53%7&4#,&(%*'4(-9*3%8#A+)*$%,-%#'4)-6*%)*$+(,$>%
*• ^#88*)*5,%&77-+5,#5A%4-(#7#*$%7&5%7-58+$*%7-'4&)#$-5$%D*%

*35E>08)FA1G),%")

%

%
!

!"*%'&5&A*)%-8%^#6#$#-5%=%?#((%5-,%&77*4,%,"*%4)-\*7,%&$%#,%(-?*)$%"*)%
...
/O<%=(,"-+A"%NNV%#$%2&3%#,%#$%2*,,*)%
,"&5%2*8-)*<%

!

H--:#5A%&,%,"*%?"-(*%$#,+&,#-5%8)-'%,"*%A)-+4%4-#5,%-8%6#*?>%?*%&)*%#5%&%4-$#,#-5%?"*)*%,"*%
A)-+4%"&$%2**5%-88*)*3%,?-%4)-\*7,$%2-,"%7-$,#5A%INLL>LLL<%/5*%4)-\*7,%A#6*$%&%4)-8#,%-8%
IJL>LLL%&53%,"*%-,"*)%INJ>LLL<%H*8,%,-%'&:*%,"*#)%-?5%3*7#$#-5$>%,"*%'&5&A*)$%?-+(3%*53%
+4%&77*4,#5A%,"*%4)-\*7,%A#6#5A%-5(9%INJ>LLL<%!"#$%#$%2*7&+$*%
...
/O<%
C-,#-5&(%#5,*)*$,%-5%7&4#,&(%S%,"*%7&4#,&(%*'4(-9*3%#5%,"*%3#6#$#-5%'+(,#4(#*3%29%&%5-,#-5&(%
7-$,%-8%7&4#,&(%-)%#5,*)*$,%)&,*%
0&4#,&(%*'4(-9*3%#$%7&(7+(&,*3%#5%,"*%$&'*%?&9%&$%8-)%
...
/O<%

...
O%8-)%,"*%4*)#-3d%

'B6<41• O,%*57-+)&A*$%#56*$,'*5,%7*5,)*%'&5&A*)$%,-%'&:*%5*?%#56*$,'*5,$%#8%,"*9%&33%,-%
...
O%2+,%)*3+7*%
...
O%?-+(3%5-,%)*$+(,%#5%39$8+57,#-5&(%2*"&6#-+)>%#<*<%,"*%2*$,%3*7#$#-5%?#((%2*%'&3*%8-)%,"*%
2+$#5*$$%&$%&%?"-(*<%
• `&:#5A%&%$4*7#8#7%7"&)A*%8-)%#5,*)*$,%D-)%0-$,%-8%0&4#,&(E% "*(4$%,-%'&:*%#56*$,'*5,%7*5,)*%
'&5&A*)$%'-)*%&?&)*%-8%,"*%7-$,%-8%,"*%&$$*,$%+53*)%,"*#)%7-5,)-(<%
•
...
O%#$%3)#6*5%29%,"*%$#[*%-8%
3#6#$#-5$%&53%,"*#)%#56*$,'*5,$<%
• O,%#$%2&$*3%-5%&77-+5,#5A%'*&$+)*$%-8%4)-8#,%&53%7&4#,&(%*'4(-9*3%?"#7"%'&9%2*%$+2\*7,%,-%
'&5#4+(&,#-5>%*%

+;<8=>0)?),")

%

%

/58=<3A4D)!A6A7A54<>)*03H538<4I0%
•
•
•
•
•

O5%&33#,#-5%,-%
...
O>%,"*)*%&)*%$-'*%-,"*)%'*,"-3$%&($-e%
G&)#&57*%=5&(9$#$%f%=$%(-5A%&$%#,%#$%3-5*%?#,"%7&)*%&53%8&#)5*$$<%O8%+$*3%&44)-4)#&,*(9%#,%7-+(3%
2*%&%A--3%,--(%-8%'-5#,-)#5A%&53%7-5,)-((#5A<%

...
&,#-$%f%$+7"%&$%$&(*$%4*)%$@+&)*%'*,*)>%-6*)"*&3%7-$,$%4*)%"-+)>%7-$,%
4*)%,)&5$4-),&,#-5%'#(*%*,7<%
/,"*)%3&,&%$+7"%&$%'&):*,%$"&)*>%$,&88%,+)5-6*)>%5*?%4)-3+7,$%3*6*(-4*3%D#5%"#A"%,*7"%
2+$#5*$$*$E%*,7<%
%

*35E>087)<775IA<10B)FA1G)I58=<3A4D)BA6A7A54<>)=03H538<4I0)
•

•
•

•
•

^#6#$#-5$%'&9%-4*)&,*%#5%3#88*)*5,%*56#)-5'*5,$<%=%3#6#$#-5%*&)5#5A%&5%
...
/O%-8%NJV%?"*5%,"*%#53+$,)9%&6*)&A*%#$%NZV<%
!)&5$8*)%4)#7#5A%4-(#79%'&9%3#$,-),%3#6#$#-5&(%4*)8-)'&57*%,)&5$8*)<%
^#6#$#-5$%'&9%"&6*%&$$*,$%-8%3#88*)*5,%&A*$<%=%3#6#$#-5%*&)5#5A%&%"#A"%
...
Its net assets are currently £20 million and it earns
a profit of £4
...
Division Red's Cost of Capital is 8% per annum
...

Proposal 1 - involves investing a further £2 million in fixed assets to earn an annual profit of
£0
...

Proposal 2 - involves the disposal of assets at their net book value of £3
...
This would
lead to a reduction in profits of £0
...
Proceeds from the disposal of assets would be
credited to head office not Division X
...
/O%8&(($%&53%,"#$%7-+(3%(*&3%,-%,"*%3#6#$#-5&(%'&5&A*)%)*\*7,#5A%4)-4-$&(%N<%%
!"#$%?-+(3%2*%&%39$8+57,#-5&(%3*7#$#-5<%%

...
/O%)#$*$%&53%,"#$%7-+(3%(*&3%,-%,"*%3#6#$#-5&(%'&5&A*)%&77*4,#5A%4)-4-$&(%J<%
!"#$%?-+(3%2*%&%39$8+57,#-5&(%3*7#$#-5<%
...
/O%8&(($%&53%,"#$%7-+(3%(*&3%,-%,"*%3#6#$#-5&(%'&5&A*)%)*\*7,#5A%4)-4-$&(%N<%%
!"#$%?-+(3%2*%&%39$8+57,#-5&(%3*7#$#-5<%%

...
/O%)#$*$%&53%,"#$%7-+(3%(*&3%,-%,"*%3#6#$#-5&(%'&5&A*)%&77*4,#5A%4)-4-$&(%J<%%
!"#$%?-+(3%2*%&%39$8+57,#-5&(%3*7#$#-5<%
...
*,+)5%-5%O56*$,'*5,%7&5%(*&3%,-%39$8+57,#-5&(%3*7#$#-5%'&:#5A%&$%'&5&A*)$%'&9%5-,%&77*4,%
4)-\*7,$%-88*)#5A%&%(-?*)%
...
/O>%*6*5%,"-+A"%,"*%
...
/O%'&9%*57-+)&A*%'&5#4+(&,#-5%-8%4)-8#,%,-%#'4)-6*%)*$+(,$>%
*%#8%CFG%#$%+$*3>%
...
*$#3+&(%O57-'*%-6*)7-'*$%,"*$*%#$$+*$%29%*57-+)&A#5A%'&5&A*)$%,-%'&:*%#56*$,'*5,$%,"&,%&)*%
4)-8#,&2(*%8-)%,"*%*5,#)*%7-'4&59<%O56*$,'*5,%7*5,)*$%?"-$%4*)8-)'&57*%#$%'*&$+)*3%2&$*3%-5%
...
O>%3*$4#,*%#,%)*3+7#5A%
Title: Divisional Performance (ROI and RI) - Comprehensive examples
Description: Comprehensive notes on the topic "Divisional Performance" from the module Managerial Accounting at Kingston University. Year at University: 3rd (Level 6) COVERS: Return on Investment (ROI) Residual Income (RI) - Advantages and disadvantages - Formulae and calculations - Exam questions and answers - Comments and explanations
Buy These NotesPreview