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:

Invoice Approval

The process of reviewing and verifying invoices before payment, ensuring they match purchase orders and delivery receipts.

Checklist

A list of items or tasks that need to be checked or completed, used as a reminder or for verification purposes.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses in a business, such as office supplies or postage.