One reason for the use of residual income to evaluate the performance of an investment...

70.2K

Verified Solution

Question

Accounting

One reason for the use of residual income to evaluate the performance of an investment center is that residual income helps to overcome the sub-optimization issue that can be associated with incentives based on ROI.

True

False

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students