Residual income is more similar to Economic Value Added than it is to return on investment.

Name: Residual income is more similar to Economic Value Added than it is to return on investment.
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Question

Quizplus · Accepted Answer

Both the residual income and Economic Value Added measures represent profit less a charge for capital used by the organizational unit. Return on investment does not take into account the cost of capital used by the unit.

Residual Income Is More Similar to Economic Value Added Than