Using residual income as a measure of performance rather than return on investment promotes goal congruence because

ACCOUNTING

Multiple Choice

Using residual income as a measure of performance rather than return on investment promotes goal congruence because

a. residual income places importance on the reduction of underperforming assets.

b. residual income calculates a percentage return rather than an absolute return.

c. residual income concentrates on maximizing an absolute amount of dollars.

d. residual income concentrates on maximizing the return on sales

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