Indicate Whether Each of the Following Statements Is True or False

question 20

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Return on investment often is used to evaluate investment centers within a company.
_____ b) Residual income measures a manager's ability to maximize earnings above a target level.
_____ c) To calculate residual income, a company must first set a target or desired rate of return on investment.
_____ d) Residual income is stated as a percentage or ratio amount.
_____ e) Suboptimization occurs when a departmental or division manager seeks to benefit himself/herself at the expense of the company as a whole.

---

Definitions:

Nominal

Pertaining to data classification where categories are named in an unordered manner, used for qualitative, non-numerical information.

Level Of Measurement

The nature of information within data, including nominal, ordinal, interval, and ratio categories, reflecting the degree of quantitative information they hold.

Learning Management System

A software application for the administration, documentation, tracking, reporting, and delivery of educational courses, training programs, or learning and development programs.

Software Application

A program or suite of programs designed to perform a specific task or solve specific problems for users.