Residual income measures give investment center managers incentive to invest in all projects that promise returns greater than the corporation's cost of capital.
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Q15: When one division of a decentralized entity
Q16: Transfers of products between divisions should never
Q17: A minimum transfer price should cover the
Q18: Allowing buying divisions to make purchases from
Q19: A transfer price should exclude any variable
Q21: An investment opportunity has an expected 20%
Q22: The claimed benefits flowing from a decentralized
Q23: One of the significant costs of decentralization
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