Indicate Whether Each of the Following Statements Is True or False

Short Answer

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 to maximize benefit for the company as a whole at the expense of his or her own best interest.______