Which of the Following Would Be an Appropriate Alternative to the Use

question 77

Multiple Choice

Which of the following would be an appropriate alternative to the use of ROI in evaluating the performance of an investment center?
$\begin{array}{lll}\text { Residual } & \text { Net cash } & \text { Cost and revenue } \\\underline{\text { income }} &\underline{ \text { flow }} &\underline{ \text { Variance analysis }}\end{array}$

• A)yes yes yes
• B)no yes no
• C)yes no no
• D)yes no yes

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Definitions:

Excess Fair Value

The amount by which the fair value of an asset exceeds its carrying value on the balance sheet, often recognized in business combinations or asset revaluations.

Franchise Contract

A legal agreement granting an individual or group the rights to market a company’s products or services in a specific territory.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after inter-company transactions have been eliminated.

Noncontrolling Interests

A portion of equity in a subsidiary not held by the parent company, representing the minority ownership's share of the subsidiary's net assets and income.