The direct comparison of the performance of two different investment centers is difficult using residual income because residual income is an absolute measure.
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Q1: Decreasing inventories leads to a reduction in
Q2: In a decentralized company, central management is
Q3: Turnover is the most common measure of
Q4: The net income reduced by the total
Q5: Residual income is sometimes used to overcome
Q7: Economic value added (EVA) is similar to
Q8: Turnover is the ratio of sales to
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Q11: The use of residual income encourages managers
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