Explain the circumstances in which residual income is preferable as a measure of divisional performance.
Question:
Explain the circumstances in which residual income is preferable as a measure of divisional performance.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
Residual income is a financial measure often used to assess the performance of different divisions w...View the full answer
Answered By
Shadrack Mulunga
I am a Biochemistry by profession. However, I have explored different fields of study. My quest to explore new fields has helped me gain new knowledge and skills in Business, clinical psychology, sociology, organizational behavior and general management, and Project Management. I count my expertise in Project management, in particular, creation of Work Break Down Structure (WBS) and use of Microsoft Project software as one of my greatest achievement in Freelancing industry. I have helped thousands of BSC and MSC students to complete their projects on time and cost-effectively using the MS Project tool. Generally, I find happiness in translating my knowledge and expertise to success of my clients. So far, i have helped thousands of students to not only complete their projects in time but also receive high grades in their respective courses. Quality and timely delivery are the two key aspects that define my work. All those who hired my services always come back for my service. If you hire my services today, you will surely return for more. Try me today!
5.00+
154+ Reviews
289+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Explain the circumstances in which residual income is preferable as a measure of divisional performance.
-
The director of Donny Co. is reviewing the performance of its division. The following information is available for the year ending 31 March 20X9 for its South division. South division operates in the...
-
Explain the circumstances in which return on investment is preferable as a measure of divisional performance.
-
What is true of a balance sheet? Question 6Answer a. The equation used in a balance sheet is Assets = Liabilities + Net Assets b. The equation used in a balance sheet is Assets = Net Assets =...
-
The car has a mass mo and is used to tow the smooth chain having a total length I and mass per unit of length m. If the chain is originally piled up, determine the tractive force F that must be...
-
LO2 Explain how the related party construct and the arms-length transaction concept interact.
-
* discuss transactional analysis as a way of understanding and planning interaction
-
On October 29, 2010, Lue Co. began operations by purchasing razors for resale. Lue uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any...
-
Sunland provided environmental friendly lawn services for homeowners. Its operating costs are as follows. Sunland changes $70 per treatment for the average single-family lawn. For the month ended...
-
Explain what is meant by a transfer price.
-
Define, and explain the use of, residual income, as a measure of divisional performance.
-
Describe the key steps an internal audit function should follow if asked to facilitate an enterprise risk assessment.
-
2. See US Debt Clock and answer the following: (Hint: Take a screenshot of the Debt Clock) (2) A. What is the current US deficit and the total federal debt? (1) B What is the net interest...
-
Q. Is GDP per capita a good measure of a society's welfare? Why or why not? (150 Words)
-
On May 3, the Happy Company wrote off the $4,300 uncollectible account of its customer, A. Johnson. The entry or entries Happy makes to record the write off of the account on May 3 is: Allowance for...
-
Who is responsible for the financial statements and maintaining effective internal control over financial reporting? Where did you find this in the annual report? What accounting rules are required...
-
8. Chad owned an office building that was destroyed in a tornado. The adjusted basis of the building at the time was $890,000. After the deductible, Chad received an insurance check for $850,000. He...
-
How does the concept of buoyancy complicate the old question "Which weighs more, a pound of lead or a pound of feathers"?
-
Floyd Distributors, Inc., provides a variety of auto parts to small local garages. Floyd purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional...
-
Give an example of a management control question for which it would be useful to classify costs as period and product costs.
-
Give an example of a management control question for which it would be useful to classify costs as direct and indirect.
-
The group is the management team of a supermarket chain operating ten shops in out-of-town locations. Each member of the group should choose a management role, one of which must be the financial...
-
3. The nominal interest rate compounded monthly when your $7,000 becomes $11,700 in eight years is ________
-
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a...
-
Advanced Small Business Certifica Drag and Drop the highlighted items into the correct boxes depending on whether they increase or decrease Alex's stock basis. Note your answers- you'll need them for...
Study smarter with the SolutionInn App