UESTION 41 What is the disadvantage of using residual income as opposed to return on investment (RO) for evaluating performance? O Residual income onoourages manngers to make profitable investments that would be rejected by managers who are being mensured by ROL O Residual income cannot be uned to compare the performance of divisions of different sizes but ROl can. O Residual income emphasizes short-run performance more than RIOI does O Residual income may not be fully controliable by the division manager whereas ROI is QUESTION 42 2 points Save Answer The following standard cost information is available for Zero Co.'s only product: Diroct material 8 feet at $4.50 per foot. Actual information for August 3,000 units were produced: 20,000 feet of direct material were purchased at a cost of $92,000 and 23,800 feet of price variance for August if the company recognizes the price variance when the What is the direct O $1,180 unfavorable $2,000 favorable O $2,000 unfavorable O $1,180 favorable material material is purchased? 2 points Save Answ QUESTION 43 Which of the following is a probable cause of an unfavorable material quantity variance? 0 Less direct material was used than expected for actual output. O More direct material was used than expected for actual output O Material was wasted as a normal result of the production process 0 Smaller quantity discounts were taken on purchases of material. acBook Pro