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Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: (CMA adapted) A. the problems associated
Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: (CMA adapted) |
A. the problems associated with measuring the asset base are eliminated.
B. desirable investment decisions will not be neglected by high-return divisions.
C. only the gross book value of assets needs to be calculated.
D. the arguments about the implicit cost of interest are eliminated.
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