Which of the Following Statements Comparing ROI and Residual Income

Multiple Choice

Which of the following statements comparing ROI and residual income is correct?

A) ROI is more useful as a performance measure for a single investment center.
B) Residual income is a better comparative measure than ROI.
C) ROI and residual income are equally good performance measures for a single investment center.
D) Residual income is more useful as a performance measure for a single investment center.