ROI for an investment center. An outpatient clinic invests $3,300,000. The desired ROI is 12 percent. In the first year, revenues are $1,750,000 and expenses are $1,270,000. Does the clinic meet its...

ROI for an investment center. An outpatient clinic invests $3,300,000. The desired ROI is 12 percent. In the first year, revenues are $1,750,000 and expenses are $1,270,000. Does the clinic meet its ROI requirement that year?

ABC and step-down methods. What are the advantages and disadvantages of ABC relative to the step-down method of cost allocation?