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biscuits and cakes (6/12)
For part d) of this question, should not the value of depreciation be deducted from divisional net assets when calculating the investment figure.
The examiner has used the opening net assets for the calculation of the ROI on the basis that it is the net assets at the start of the month that generates the profit for the month.
There are good arguments for using the closing net assets or the average net assets, but in the exam use opening net assets except where the question specifies different.
For part d) of this question, how to do the calculations. I have got a wrong answer.
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