In a centralized company, overall profit margins can mask inefficiencies within the various subdivisions.
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Q5: Economic value added (EVA) can be calculated
Q6: The use of residual income encourages managers
Q7: A production department within the factory, such
Q8: The after-tax operating income reduced by the
Q9: Using return on investment to calculate residual
Q12: Turnover is the ratio of operating income
Q13: By centralizing the operating decisions, central management
Q14: A manager assessing an investment using return
Q15: Unlike ROI, residual income can encourage a
Q18: A key feature of economic value added
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