Multiple Choice
Using residual income as a measure of performance rather than return on investment promotes goal congruence because residual income ________.
A) places importance on the reduction of underperforming assets
B) calculates a percentage return rather than an absolute return
C) concentrates on maximizing an absolute amount of dollars
D) concentrates on maximizing the return on sales
Correct Answer:

Verified
Correct Answer:
Verified
Q57: Carriage Incorporated manufactures horse carriages. The company
Q58: The DuPont method recognizes the two basic
Q59: Home Decor Inc., manufactures home cleaning products.
Q60: Waldorf Company has two sources of funds:
Q61: To convert the operating income for an
Q63: Current cost return on investment is a
Q64: Total assets employed includes all assets, regardless
Q65: A report that measures financial and nonfinancial
Q66: Springfield Corporation, whose tax rate is 34%,
Q67: Zenith Corporation's net income is $80,000. What