Which of these is a commonly used measure of performance for investment centers?
A)Residual income
B)Total assets
C)Total income
D)Variable cost

Question

Quizplus · Accepted Answer

Residual income is a commonly used measure of performance for investment centers because it takes into account both the profit earned and the capital invested in the center, which is important for measuring the return on investment. Total assets and total income do not necessarily reflect the profitability or efficiency of the center, and variable cost is only one aspect of measuring performance.

Which of These Is a Commonly Used Measure of Performance