How does use the rate of return on investment


Response to the following questions:

1. How does using the rate of return on investment facilitate comparability between divisions of decentralized companies?

2. The rates of return on investment for Shear Co.'s three divisions, North, South, and Midwest are 38%, 30%, and 22%, respectively. In expanding operations, which of Shear Co.'s divisions should be given priority? Explain.

 

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Financial Accounting: How does use the rate of return on investment
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