Which of the following would be an appropriate alternative to the use of ROI in evaluating the performance of an investment center?
$\begin{array}{lll}
\text { Residual } & \text { Net cash } & \text { Cost and revenue } \
\underline{\text { income }} &\underline{ \text { flow }} &\underline{ \text { Variance analysis }}
\end{array}$

A)yes yes yes
B)no yes no
C)yes no no
D)yes no yes

Question

Which of the following would be an appropriate alternative to the use of ROI in evaluating the performance of an investment center?
$\begin{array}{lll}
\text { Residual } & \text { Net cash } & \text { Cost and revenue } \
\underline{\text { income }} &\underline{ \text { flow }} &\underline{ \text { Variance analysis }}
\end{array}$

A)yes yes yes
B)no yes no
C)yes no no
D)yes no yes

Quizplus · Accepted Answer

Residual income is an appropriate alternative to ROI as it considers the cost of capital, unlike net cash flow and variance analysis.

Which of the Following Would Be an Appropriate Alternative to the Use