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A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2012 · Q231 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
Breduce the level of dividends paid to investors
Creduce the level of overhead expenses
Drevalue freehold land and buildings upwards

✓ Correct answer

C: reduce the level of 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, Oct/Nov 2012 Paper 1 Variant 2, question 23.

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