The Advantage of Residual Income as a Measure of Investment

question 60

Multiple Choice

The advantage of residual income as a measure of investment centre performance is:

• A) it can be used to compare investment centres of different sizes.
• B) it focuses on long-term performance.
• C) it includes the organisation's minimum required rate of return.
• D) it can be used to compare investment centres of different sizes AND it includes the organisation's minimum required rate of return.

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Definitions:

Alternative Purposes

Uses for an item, service, or space that differ from its originally intended or most common use.

Information Collected

Data or facts obtained through research, observation, or documentation that are used for analysis or decision-making.

Taking Action

The phase of implementing strategies or decisions in order to achieve specific objectives.

Marketing Research Process

A systematic methodology for identifying a marketing problem, collecting data, analyzing information, and reporting findings to aid in making marketing decisions.