Managerial performance can be measured in various ways, including return on investment $($ROI$)$ and residual income $($RI$).$ A good reason for using RI rather than ROI is:

Multiple Choice

RI can be computed without regard to identifying an investment base.

Goal congruence is more likely to be promoted by using RI$.$

RI is well understood and often used and discussed in the financial press.

ROI does not take into consideration both the asset turnover $($AT$)$ ratio and the return$-$on$-$sales $($ROS$)$ percentage.

An imputed interest rate $($minimum rate of return$)$ does not have to be specified.