Question: Suppose a manager's performance is to be evaluated by residual income. Which of the following will NOT result in an increase in the residual income

Suppose a manager's performance is to be evaluated by residual income. Which of the following will NOT result in an increase in the residual income figure for this manager, assuming other factors remain constant?

Multiple Choice

  • An increase in sales.
  • An increase in the minimum required rate of return.
  • A decrease in expenses.
  • A decrease in operating assets.

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