Question
Return on investment (ROI), residual income (RI), and Economic Value Added (EVA) all have in common which one of the following characteristics? They are all
Return on investment (ROI), residual income (RI), and Economic Value Added (EVA) all have in common which one of the following characteristics?
They are all relative (rather than absolute) performance indicators.
They all rely on the use of data used in the preparation of financial statements (for external reporting).
They all incorporate nonfinancial performance measures into the metric.
They all incorporate in the financial performance metric some measure of investment.
They all lead to goal-congruency problems when used to evaluate subunit performance.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
