Which of these is a $\bold{disadvantage}$ of the residual income performance measure?
A)it can still encourage short-term decision-making
B)the cost of capital may not be easy to determine
C)the required rate of return may not be easy to determine
D)all the options are disadvantages of the residual income performance measure

Question

Quizplus · Accepted Answer

All of the options are disadvantages of the residual income performance measure. The residual income measure may still encourage short-term decision-making, and both the cost of capital and the required rate of return may be difficult to determine accurately.

Which of These Is A disadvantage\bold{disadvantage}disadvantage Of the Residual Income Performance Measure? A)it Can Still Encourage

Which of These Is A $\bold{disadvantage}$ Of the Residual Income Performance Measure?
A)it Can Still Encourage