When comparing performance tools such as Return on Investment and Residual Income,

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Management must be clear in recognizing that each method has strengths and weaknesses. Each performance tool is unique in its approach and application, and none is intrinsically better than the other. It is important for management to understand the strengths and limitations of each method and use them accordingly, taking into account the specific context and goals. There may be situations where ROI is more appropriate, and others where RI is better suited. Blending both methods may provide a more comprehensive analysis, but it is not a one-size-fits-all solution.

When Comparing Performance Tools Such as Return on Investment and Residual