IDNLearn.com provides a comprehensive platform for finding accurate answers. Get the information you need from our community of experts, who provide detailed and trustworthy answers.
Residual Income is a better measure for performance evaluation of an Investment center manager than Return on Investment because:
- It encourages managers to make investments that are profitable for the entire company. - It can be used to compare the performances of divisions of different sizes. - It does not measure performance based on operating assets. - The problems with measuring the asset base are eliminated.
Sagot :
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. IDNLearn.com has the solutions you’re looking for. Thanks for visiting, and see you next time for more reliable information.
