Which of the Following Statements Comparing ROI and Residual Income

question 107

Multiple Choice

Which of the following statements comparing ROI and residual income is correct?

• A) ROI is more useful as a performance measure for a single investment center.
• B) Residual income is a better comparative measure than ROI.
• C) ROI and residual income are equally good performance measures for a single investment center.
• D) Residual income is more useful as a performance measure for a single investment center.

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Definitions:

Inservice Opportunities

Professional development programs or activities offered to employees, especially educators, to enhance their skills and knowledge while in service.

Synovial Membrane

A layer of connective tissue that lines the inner surface of capsules in synovial joints, producing synovial fluid for lubrication.

Serous Membrane

A thin, smooth membrane consisting of two layers that line and enclose several body cavities, where fluid is secreted between layers to reduce friction.

Mucous Membrane

Thin sheet consisting of epithelium and connective tissue (lamina propria) that lines cavities that open to the outside of the body; many contain mucous glands that secrete mucus.