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Indicate Whether Each of the Following Statements Is True or False

Question 125

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Indicate whether each of the following statements is true or false.
Return on investment often is used to evaluate cost centers within a company.______
Return on investment measures a manager's ability to maximize earnings above a target level.______
To calculate residual income,a company must first set a target or desired return on investment.______
Residual income is stated as a dollar amount.______
Suboptimization occurs when a departmental or division manager seeks to maximize benefit for the company as a whole at the expense of his or her own best interest.______

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