on 32 1 red out of Which of the following is a true statement A. Residual income should be used to evaluate a profit center but not a cost center B. If a company contains a number of investment centers of differing sizes, return on investment (Ron) should be used rather than residual income to rank the financial performance of the divisions C. Suppose a company evaluates divisional performace using both ROI and residual income. The company's minimum required rate of return for the purposes of residual income calculations is 12%. If a division has a residual income of $6,000 then its ROI is less than 12% D. Residual income can be used most effectively in comparing the performance of divisions of different size o question . . OCC ODD