Using residual income as a measure of performance rather than return on investment promotes goal congruence because
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Question:
Using residual income as a measure of performance rather than return on investment promotes goal congruence because residual income ________.
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Part 1
A.
places importance on the reduction of underperforming assets
B.
concentrates on maximizing the return on sales
C.
calculates a percentage return rather than an absolute return
D.
concentrates on maximizing an absolute amount of dollars
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