Residual income should not be used to compare the performance of different sized investment centers.

Name: Residual income should not be used to compare the performance of different sized investment centers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Residual income is absolute and can be higher for larger investment centers simply due to their size, not necessarily their efficiency or profitability, making it less suitable for comparing performance across different sized centers.

Residual Income Should Not Be Used to Compare the Performance