Which of the Following Measures of Performance Encourages Continued Expansion

question 27

Multiple Choice

Which of the following measures of performance encourages continued expansion by an investment center so long as it is able to earn a return in excess of the minimum required return on average operating assets?

• A) return on investment
• B) transfer pricing
• C) the contribution approach
• D) residual income

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Definitions:

Social Inequality

Uneven opportunities and rewards exist for different social standings or positions within a group or society.

Genetically Programming

Creating modifications or specific outcomes in the genetic makeup of organisms through biotechnological methods. Also known as genetic engineering.

Natural Evolution

The gradual process by which biological species undergo changes over time through variation and selection.

Cancer Alley

A region in the United States, specifically in Louisiana along the Mississippi River, known for its high concentration of industrial plants and associated health impacts, including high cancer rates.