Which of the Following Statements Comparing ROI and Residual Income

question 99

Multiple Choice

Which of the following statements comparing ROI and residual income is correct?

• A) ROI is more useful as a performance measure for a single investment centre.
• B) Residual income is a better comparative measure than ROI.
• C) ROI and residual income are equally good performance measures for a single investment centre.
• D) Residual income is more useful as a performance measure for a single investment centre.

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