.Good evening - hope you are doing well. . i was going through the technical articles for ROI and at no point was the formula ( Net Operationg income/Average operating Assets ) used here mentioned . can you explain why ?
There is no IFRS on ROI, it can be calculated either with initital investment or average investment in the denominator. In a multiple choice it will be clear, only one way to do it. In this question, they tell you in paragraph 2 how to calculate it, so you just follow the instructions given here.
Why did you add the uncontrollable costs (i.e. The depriciation and the head office costs) with the net profit? These are uncontrollable by the divisions but are treated as part of controllable profit? I am confused. Why?
In the question it says that X% of these costs is controlled by head office. This means that the remaining part of the costs were decided up by the divisional managers. So they control the part not controlled by head office.
The exam version of the software has the highlighting tool; but for some reason, the specimen exams (at the time of this writing) don't. You'll definitely see it when you take your exam.
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Short and simple reasoning including all points to score full marks! Thank you sir for these videos❤️❤️
Glad it's helpful :)
Excellent Structure Steve, this is really helpful, thank you
You're welcome! Good luck tomorrow!
Your videos are pure gold! thanks a lot :)
Glad they are helping :)
Thanks Steve, could you do a video on evaluation of BSC.thanks
Yes, this week.
Omg !! Thankful god bless you sir❤️
Glad it helped :)
.Good evening - hope you are doing well. . i was going through the technical articles for ROI and at no point was the formula ( Net Operationg income/Average operating Assets ) used here mentioned . can you explain why ?
There is no IFRS on ROI, it can be calculated either with initital investment or average investment in the denominator. In a multiple choice it will be clear, only one way to do it. In this question, they tell you in paragraph 2 how to calculate it, so you just follow the instructions given here.
Why did you add the uncontrollable costs (i.e. The depriciation and the head office costs) with the net profit?
These are uncontrollable by the divisions but are treated as part of controllable profit? I am confused. Why?
In the question it says that X% of these costs is controlled by head office. This means that the remaining part of the costs were decided up by the divisional managers. So they control the part not controlled by head office.
Lifesaver!
Glad it was helpful :)
Very helpful
Glad you think so!
Do you leave the sub headings tho or is it better to remove them?
Leave them in--sign posting for the marker.
Sir you haven't done the B part of this question. Want to know ur approach for that part as well..
I'll have to add that to my list, I don't have it at the moment.
How to use highlighter tool?????
The exam version of the software has the highlighting tool; but for some reason, the specimen exams (at the time of this writing) don't. You'll definitely see it when you take your exam.