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A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2016 · Q191 Mark

A company wants to increase its return on capital employed in the short term. Which course of action will achieve this?

Ainvest in new plant and machinery
Bmake a bonus issue of shares
Creduce overhead expenses
Dreduce the dividends paid to investors

✓ Correct answer

C: reduce overhead expenses

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About this question

Topic
Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2016 Paper 1 Variant 2, question 19.

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