Managerial Performance Can Be Measured in Many Different Ways Including

question 76

Multiple Choice

Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is:

• A)Residual income can be computed without having to measure operating assets.
• B)Managers are more likely to accept projects that are beneficial to the company.
• C)ROI does not take into account both turnover and margin.
• D)A minimum rate of return does not have to be specified when the residual income approach is used.

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Definitions:

Symbolic Notation

A system of symbols used to represent numbers, operations, relations, or concepts, often used in mathematics and logic.

Atomic Components

The smallest, indivisible parts or elements that make up a system, reflecting the concept in both physical science (atoms in matter) and logic (basic propositions).

Symbolic Notation

The use of symbols to represent mathematical operations, quantities, or logical operations.

Atomic Components

The basic, indivisible parts or elements that make up a system or compound.