Indicate Whether Each of the Following Statements Is True or False.Return

Essay

Indicate whether each of the following statements is true or false.Return on investment often is used to evaluate cost centers within a company.Return on investment measures a manager's ability to maximize earnings above a target level.To calculate residual income, a company must first set a target or desired return on investment.Residual income is stated as a dollar amount.Suboptimization occurs when a departmental or division manager seeks maximize benefit for the company as a whole at the expense of his or her own best interest.