Multiple Choice
Which of the following is a disadvantage of both residual income and ROI?
A) They are both absolute measures of return.
B) They are both difficult to calculate.
C) They both do not discourage myopic behavior.
D) All of these are disadvantages of both ROI and residual income.
Correct Answer:
Verified
Correct Answer:
Verified
Q97: Solister, Inc., had the following information:
Q98: The Propeller Division provides propellers for
Q99: Which of the following departments is likely
Q100: If a company has sales of $2,500,000,
Q103: In an investment responsibility center, the manager
Q104: Return on investment (ROI) refers to earnings
Q105: A transfer price is the price charged
Q106: Responsibility accounting is a system that measures
Q107: The Engine Division provides engines for
Q115: A manufacturing division of a company would