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Remaining Time: 59 minutes, 28 seconds. Question Completion Status: UUTIS TistonCar Cost that, I certain mstances, Tray ve Terevanc Tor Tuture uetisium Taking, QUESTION 9
Remaining Time: 59 minutes, 28 seconds. Question Completion Status: UUTIS TistonCar Cost that, I certain mstances, Tray ve Terevanc Tor Tuture uetisium Taking, QUESTION 9 4 points Manchester Corporation is considering the use of residual income to measure the performance of its divisions. What major disadvantage of this method should the company consider before deciding to adopt it? O A. Residual income does not take into account the cost of capital. OB. Residual income does not measure how effectively the division manager controls costs. OC. The minimum required rate of return may eliminate desirable investments. OD. This method does not take into account differences in the size of divisions. QUESTION 10 4 points A company that has a profit can increase its return on investment (ROI), assuming other factors remain the same by: A. Increasing average operating assets and operating expenses by the same pound amount. OB. Decreasing average operating assets and sales by the same percentage. OC. Increasing sales revenue and operating expenses by the same percentage. D. Increasing sales revenue and operating expenses by the same pound amount. QUESTION 11 6 points
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