Find which is false about residual income

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Question 1: Which of the following is false about residual income?

Option a. It is calculated by subtracting the cost of capital (in $) from accounting-based profit.

Option b. It is used sparingly by organizations.

Option c. It creates the under-investment problem.

Option d. It can be used at the division-level within an organization.

Reference no: EM132527585

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