The following is a measure of a manager's performance working in an investment center.
A) rate of return on investment
B) residual income
C) divisional income statements
D) all of the responses

Question

Quizplus · Accepted Answer

All of the responses are measures of a manager's performance in an investment center.

A) Rate of return on investment measures the profitability of the investments made by the center under the manager's control.

B) Residual income measures the excess income generated by the investment center after deducting the cost of the capital supplied by the parent company.

C) Divisional income statements provide a detailed breakdown of the revenues, expenses, and profits of the investment center.

The Following Is a Measure of a Manager's Performance Working