bigg1307 bigg1307

03-06-2023
Business

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QUESTION
Which is an advantage of using residual income (RI) over return on investment (ROI)?
ANSWER
RI promotes goal congruence better than ROI.
Management can use different target rates of return for divisions with different levels of risk.
The equation incorporates management’s target rate of return.
All listed are advantages.
I DON'T KNOW YET

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