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    Business
  3. Study Set
    Financial and Managerial Accounting
  4. Exam
    Exam 24: Responsibility Accounting and Performance Evaluation
  5. Question
    Residual Income (RI)considers Both the Division's Operating Income and Its
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Residual Income (RI)considers Both the Division's Operating Income and Its

Question 105

Question 105

True/False

Residual Income (RI)considers both the division's operating income and its average total assets.In addition,it also incorporates another piece of information known as top management's target rate of return.

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