Which One of the Following Is a Correct Statement About

question 74

Multiple Choice

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

• A)Its goal is to maximize profits of an investment centre.
• B)It is less effective for evaluating investment centres 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 centre with the company's minimum rate of return.

---

Definitions:

Schemas

Cognitive frameworks or concepts that help individuals organize and interpret information in the world around them.

Cognitive Developments

The process by which an individual's ability to think, understand, and reason matures over time.

Haphazard

Lacking any obvious principle of organization; random or disorganized.

Developmental Stage

A distinct period in the life span characterized by particular patterns of behavior and cognitive abilities.