When Assessing Performance,one Way to Compensate for Differences Among Divisions

Multiple Choice

When assessing performance,one way to compensate for differences among divisions of a multinational organization would be for the parent company to

A) use different target rates of return to compute residual incomes.
B) modify the return on investment calculation so that foreign currency fluctuations are removed from all financial statement figures.
C) classify all domestic divisions as investment centers and all foreign divisions as profit centers.
D) use financial performance measures for units whose records are kept in the domestic currency and non-financial measures for units whose records are kept in a foreign currency.