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Using residual income as a measure of performance rather than return on investment promotes goal congruence because

Using residual income as a measure of performance rather than return on investment promotes goal congruence because
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Solution Guide / Answer Key:

ACCOUNTING

Multiple Choice

Using residual income as a measure of performance rather than return on investment promotes goal congruence because

            a.         residual income places importance on the reduction of underperforming assets.

            b.         residual income calculates a percentage return rather than an absolute return.

            c.         residual income concentrates on maximizing an absolute amount of dollars.

            d.         residual income concentrates on maximizing the return on sales.

 

FILE: MS WORD

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