Which of the following is a measure of a manager's performance working in an investment center?
A) return on investment
B) residual income
C) divisional income statements
D) All of these choices

Question

Quizplus · Accepted Answer

All three options are measures of a manager's performance working in an investment center. Return on investment (ROI) measures how effectively the manager is using the center's assets to generate profit. Residual income is the income that remains after deducting the minimum return required on the center's assets, and it reflects the manager's ability to generate income above and beyond what is expected. Divisional income statements show the center's revenue, expenses, and net income, which can be used to evaluate the overall performance of the center and the manager's ability to control costs and increase profits.

Which of the Following Is a Measure of a Manager's