Question: When using a reporting system based on Residual Income, O both a minimum and a maximum rate of expected return must be established. senior

When using a reporting system based on Residual Income, O both a

When using a reporting system based on Residual Income, O both a minimum and a maximum rate of expected return must be established. senior management must ensure that there is adequate capital investment in the firm in the long term. senior management must ensure an adequate return for the shareholders. O unprofitable divisions must be either sold off or improved.

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