Most organizations use residual income instead of return on investment (ROI) as a performance measure.

Name: Most organizations use residual income instead of return on investment (ROI) as a performance measure.
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Most organizations prefer using ROI as a performance measure because it is a widely recognized and easily understood metric that evaluates the efficiency of an investment. Residual income is less commonly used as it requires more complex calculations and adjustments.

Most Organizations Use Residual Income Instead of Return on Investment