Which of the Following Statements Contrasting Residual Income with Return

question 120

Multiple Choice

Which of the following statements contrasting residual income with return on investment is correct?

• A)ROI may lead to goal incongruence while residual income does not.
• B)ROI is a lagging indicator while residual income is a leading indicator.
• C)Residual income is a financial measure while return on investment emphasizes the customer perspective.
• D)Residual income is a long-term measure while ROI is a short-term measure.

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