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

Question

Quizplus · Accepted Answer

All three measures are commonly used to evaluate a manager's performance in an investment center. Rate of return on investment measures the return generated by the assets under the manager's control, residual income measures the amount of income generated by the investment center that exceeds a minimum required return, and divisional income statements provide a comprehensive view of the center's financial performance.

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