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  3. Study Set
    Survey of Accounting Study Set 4
  4. Exam
    Exam 15: Performance Evaluation
  5. Question
    Use of Residual Income to Evaluate the Performance of Divisions
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Use of Residual Income to Evaluate the Performance of Divisions

Question 3

Question 3

True/False

Use of residual income to evaluate the performance of divisions may lead to a reduction in suboptimizing behavior by managers, compared to the use of return on investment to evaluate performance.

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