Return on investment (ROI) , residual income (RI) , and Economic Value Added (EVA®) all have in common which one of the following characteristics?
A) They all lead to goal-congruency problems when used to evaluate subunit performance.
B) They all incorporate nonfinancial performance measures into the metric.
C) They all rely on the use of data used in the preparation of financial statements (for external reporting) .
D) They are all relative (rather than absolute) performance indicators.
E) They all incorporate in the financial performance metric some measure of investment.
Correct Answer:
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