Indicate whether each of the following statements is true or false.
_____ a) Use of residual income to evaluate managers of an investment center may avoid some of the suboptimization that can occur with use of return on investment as a performance measure.
_____ b) Residual income is stated as an absolute amount, not a ratio or percentage.
_____ c) One disadvantage with residual income as a measure of performance is that it causes larger divisions to appear to do better than smaller divisions.
_____ d) A balanced score card includes various nonfinancial performance measures but no financial performance measures.
_____ e) The balanced scorecard is a holistic approach to evaluating management and division performance.

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The Answer of Indicate whether each of the following statements is true or false.
_____ a) Use of residual income to evaluate managers of an investment center may avoid some of the suboptimization that can occur with use of return on investment as a performance measure.
_____ b) Residual income is stated as an absolute amount, not a ratio or percentage.
_____ c) One disadvantage with residual income as a measure of performance is that it causes larger divisions to appear to do better than smaller divisions.
_____ d) A balanced score card includes various nonfinancial performance measures but no financial performance measures.
_____ e) The balanced scorecard is a holistic approach to evaluating management and division performance.

Indicate Whether Each of the Following Statements Is True or False