Which one of the following is NOT a measure that management can use in evaluating and controlling investment center performance?
A)Rate of return on investment
B)Negotiated price
C)Residual income
D)Income from operations

Question

Quizplus · Accepted Answer

Negotiated price is not a measure that management can use in evaluating and controlling investment center performance. This is because negotiated price refers to the price at which an item is purchased or sold through a negotiation process, and it is not a performance measure. The other choices, rate of return on investment, residual income, and income from operations, are commonly used performance measures for investment centers.

Which One of the Following Is NOT a Measure That