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A problem with rewarding managers only on the basis of residual income

A problem with rewarding managers only on the basis of residual income
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Solution Guide / Answer Key:

ACCOUNTING

Multiple Choice

A problem with rewarding managers only on the basis of residual income

            a.         is that residual income is difficult to measure.

            b.         is that on occasion the items in the residual income calculation are not quantifiable.

            c.         is that residual income can depend on items over which the manager has little control.

            d.         include all of the above.

 

FILE: MS WORD

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