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Which of the Following Is Not True About Residual Income

Question 29

Multiple Choice

Which of the following is not true about residual income (RI) ?


A) Influenced by size.
B) Managers maximize an absolute amount.
C) Managers maximize percentages.
D) Stakeholders want residual income to achieve goal congruence.
E) Managers evaluated on residual income choose new project only if residual income is positive.

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