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Using residual income as a measure of performance rather than return on investment promotes goal congruence because residual income concentrates on maximising the return on

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Using residual income as a measure of performance rather than return on investment promotes goal congruence because residual income concentrates on maximising the return on sales concentrates on maximising an absolute amount of dollars places importance on the reduction of underperforming assets calculates a percentage return rather than an absolute return

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