In Calculating Residual Income, the Variable Set by Top Management

question 90

Multiple Choice

In calculating residual income, the variable set by top management is called the

• A) average operating assets.
• B) operating income.
• C) hurdle rate.
• D) actual operating assets.

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Definitions:

Myelin

Fatty material produced by neuroglial cells; insulates axons and thus speeds conduction of action potentials.

Neuroglial Cells

Supportive cells in the nervous system that provide insulation, nutrients, and structural support for neurons, and participate in signal transmission.

Myelin

A fatty covering that insulates nerve fibers in the brain, spinal cord, and peripheral nerves, speeding the transmission of nerve impulses.

Action Potential

A rapid rise and subsequent fall in voltage or membrane potential across a cellular membrane, a process allowing neurons to transmit signals.