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    Managerial Accounting
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    Exam 11: Performance Evaluation and Decentralization
  5. Question
    Residual Income Is Sometimes Used to Overcome the Tendency of ROI
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Residual Income Is Sometimes Used to Overcome the Tendency of ROI

Question 76

Question 76

True/False

Residual income is sometimes used to overcome the tendency of ROI to discourage investments that are profitable for the company, but that lower the division's ROI.

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