Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. what is a weakness of residual income? ...

What is a weakness of residual income? ...

90.2K

Verified Solution

Question

Accounting

What is a weakness of residual income?

  • A.

    It encourages managers to make investment decisions that are more consistent with the interests of the company as a whole.

  • B.

    It does not take cost of capital into consideration.

  • C.

    It can be misleading when comparing divisions of different sizes.

  • D.

    It routinely results in managers rejecting investment opportunities that would be advantageous to the company as a whole.

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

Q

What is the diameter of a hemisphere with a volume of 5078 m, to the...

Geometry
Q

type in your own words Concept/Theory Paraphrased book definitionĂ‚ Ă‚ Ă‚ Ă‚ Ă‚ Ă‚ Ă‚ Ă‚ (in your ownwords) Ă‚ Ă‚ Ă‚  epithelial tissue Ă‚ Ă‚ Ă‚  connective tissue Ă‚ Ă‚ Ă‚  muscle tissue Ă‚ Ă‚ Ă‚  nervous tissue Review homeostasis: Ă‚ Ă‚ Ă‚  stimulus Ă‚ Ă‚ Ă‚ ...

Biology
Q

(Using Matlab)We are given data about a charity organization in table 1 Days 10 20 30...

Mechanical Engineering
Q

What would constitute a diagnosis of bacterial vaginosis The presence of clue cells The presence...

Biology
Q

3A 4A Read More Two coherent light sources P and Q are at a distance...

Physics
Q

Find the future value of the annuity.payments of $3000 at the end of each year...

Geometry
Q

7 Basic cube root function f x x 7 Answer the following and then graph...

Basic Math
Q

Suppose a computer processor can perform about 3.3 billion operations per second. How many operations...

Basic Math
Q

Jordan must complete summer assignments for her language arts, science, and history classes. She is...

Basic Math
Q

Simplify the given expression 82 26 15 86 20 2 46 10 Reorder each step...

Algebra
Q

Received customer payment of $820 to ship several items to Philadelphia next month. Note: Enter...

Accounting
Q

Given the choice of two investments, would you choose one that pays a total return...

Accounting