Topic: Divisional Performance

Concepts Covered: Return on Investment (ROI), Responsibility Centre

Description: This case is an exam based 20 Marks Section C question, Covering the Divisional Performance using the Return on Investment (ROI) technique. Further, discusses the assumptions on inclusion and exclusions of certain items in the ROI calculation and its appropriateness. Finally, the case includes the appropriateness of considering the division as an investment centre.