The Major Advantage of Residual Income as a Performance Measure

question 190

True/False

The major advantage of residual income as a performance measure is that it gives consideration to not only a minimum rate of return on investment but also the total magnitude of income from operations earned by each division.

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Definitions:

TPS

Transaction Processing System (TPS) refers to a type of information system that collects, stores, modifies, and retrieves the transactions of an organization.

TPS

Transaction Processing System, a type of information system that collects, stores, modifies, and retrieves the transactions of an organization.

ES

Enterprise Systems, large-scale software packages that support business processes, information flows, reporting, and data analytics in complex organizations.

DSS

Decision Support System, a computerized program used to support decision-making activities in an organization.