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Home Q & A Board Other Fields Homework Help Business Accounting
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sarasmith06 sarasmith06
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A year ago
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.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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diana72gdiana72g
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A year ago
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This verified answer contains over 190 words.
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sarasmith06 Author
wrote...

A year ago
Thanks
Lourd Jenkins
wrote...

Yesterday
Thank you, thank you, thank you!
gefa
wrote...

2 hours ago
Good timing, thanks!
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