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Other Fields Homework Help Accounting Topic started by: sarasmith06 on Jan 29, 2023



Title: A disadvantage of evaluating managers' performance based on ROI is that it can lead to undesirable ...
Post by: sarasmith06 on Jan 29, 2023
A disadvantage of evaluating managers' performance based on ROI is that it can lead to undesirable managerial actions. Residual income can overcome many of the problems of ROI.

Required:

a.Define residual income and explain how it is calculated.
b.What are the shortcomings of residual income? Give an example of when ROI is
a better measure than residual income.


Title: A disadvantage of evaluating managers' performance based on ROI is that it can lead to undesirable ...
Post by: diana72g on Jan 29, 2023
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