Why is residual income a better measure for performance evaluation of an investment center manager than return on investment? Division A is considering a project that will earn a rate of return that is greater than the required return on operating assets, hut less than the division's ROI. Division B is considering a project that will earn a rate of return that is greater than the division's ROI, but less than the required return on operating assets. If the objective is to maximize residual income, would these divisions accept or reject their projects? What assets are considered an operating asset in return on investment computations? What is an argument for the use of net book value in the computation of operating assets in return on investment calculations? What would decrease return on investment (ROI)? All other things equal, what would increase the residual income of a division? Relevant costs should contain what two criteria? Opportunity costs-know definition-are they relevant? Freestone Company is considering renting Machine Y to replace Machine X. It is expected that Y will waste less direct materials than does X. If Y is rented, X will be sold on the open market. For this decision, which of the preceding factors is (are) relevant? In a sell or process further decision what costs are relevant