Indicate Whether Each of the Following Statements Is True or False

question 64

Short Answer

Indicate whether each of the following statements is true or false.
Use of residual income to evaluate managers of an investment center may avoid some of the suboptimization that can occur with use of return on investment as a performance measure.______
Residual income is stated as a ratio or percentage.______
One disadvantage with residual income as a measure of performance is that it causes smaller divisions to appear to do better than larger divisions.______
A balanced score card includes various nonfinancial performance measures as well as financial performance measures.______
The balanced scorecard is a holistic approach to evaluating management and division performance.______

---

Definitions:

Marketer

A person or company involved in the process of promoting, selling, and distributing products or services to potential customers.

Customer-Oriented

An approach by businesses that focuses on creating a positive experience for customers through tailored services and products that meet their needs.

Pricing Strategy

A method or model used by businesses to set the selling price for their products or services, taking into account factors like cost, competition, target market, and overall business objectives.

Upscale Running Gear

refers to high-quality, often expensive, running attire and equipment designed for serious or professional athletes seeking performance improvement.