Which One of the Following Is a Correct Statement About

question 25

Multiple Choice

Which one of the following is a correct statement about residual income?

• A) Its goal is to maximize profits of an investment center.
• B) It is less effective for evaluating investment centers than ROI.
• C) It is the ratio of controllable margin to the minimum rate of return on average operating assets.
• D) It evaluates performance by comparing the return of an investment center with the company's minimum rate of return.

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Definitions:

Debt

Money owed by one party, the borrower or debtor, to a second party, the lender or creditor.

Political Ideals

Refers to the fundamental beliefs or principles concerning how society should be organized and governed.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, especially when considered as the creation of a superhuman agency or agencies, often involving devotional and ritual observances.