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    Business
  3. Study Set
    Accounting
  4. Exam
    Exam 24: Performance Evaluation for Decentralized Operations
  5. Question
    A Disadvantage to Using the Residual Income Performance Measure Is
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A Disadvantage to Using the Residual Income Performance Measure Is

Question 40

Question 40

True/False

A disadvantage to using the residual income performance measure is that it encourages managers to spend only the minimum acceptable rate of return on assets set by upper management.

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