The major advantage of residual income as a performance measure is that it gives consideration to not only a minimum rate of return on investment but also the total magnitude of income from operations earned by each division.

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This statement is true. Residual income is a performance measure that takes into account both the minimum rate of return on investment and the total income earned by a division, making it a more comprehensive measure of performance than other financial metrics.

The Major Advantage of Residual Income as a Performance Measure