Measure for performance evaluation of an investment

Assignment Help Financial Accounting

Reference no: EM131208434

Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: (CMA adapted)

A. the problems associated with measuring the asset base are eliminated.

B. desirable investment decisions will not be neglected by high-return divisions.

C. only the gross book value of assets needs to be calculated.

D. the arguments about the implicit cost of interest are eliminated.

Reference no: EM131208434

Questions Cloud

Multiplication axiom or tree diagram : A college offers 2 introductory courses in history, 3 in science, 2 in philosophy, 4 in mathematics, and 3 in English. Use the Multiplication Axiom or Tree Diagram to answer the following:

What is currently being done about them : These can be vandalism, serious crimes, juvenile crime, vandalism, police misconduct, etc. Describe the 2 problems as they are specific to your community. Who are the perpetrators?

Accounting treatment associated with this transaction : On January 1st 2016, Pilot received an order for internet service from ACME Co. ACME orders a 1Gbps plan with Pilot, paying $2,000 upfront via credit card. This payment includes $1,000 first month service payment and another $1,000 installation / act..

What is the power factor of the generator : With the switch closed, find the real power P, reactive power Q, and apparent power S supplied by the generator. What is the power factor of the generator?

Measure for performance evaluation of an investment : Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: (CMA adapted)

Prepare the journal entry to record income tax expense : Bandung Corporation began 2014 with a $95,400 balance in the Deferred Tax Liability account. At the end of 2014, the related cumulative temporary difference amounts to $359,700, and it will reverse evenly over the next 2 years. prepare the journal en..

How you incorporate anita parents and school into your plan : Include issues of gender, diversity, and ethics in your plan. As the counselor meeting with Anita, how will you manage state-mandated reporting laws and maintaining Anita's confidentiality within the community?

Critically evaluate arguments for selling two divisions : He wishes to make a strategic decision about the long-term viability of both the bathroom accessories division and the pipes division due to the very competitive environment both divisions are competing in. Critically evaluate the arguments for sel..

What combination of poles on the two machines could convert : If the two machines have different numbers of poles but exactly the same shaft speed, then the electrical frequency of the two machines will be different due to Equation (3-34). What combination of poles on the two machines could convert 60 Hz pow..

User Account

All Pages