The basic objective of the residual income approach to performance measurement and evaluation is to have a division maximize its ?

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James Webb is the general manager of the Industrial Product Division, and his pe...
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Moataz Ali Sobhi
24-February-2015

A. Return on investment rate.

B. Imputed interest rate charge.

C. Cash flows.

D. Income in excess of a desired minimum return.

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Date Posted: 2015/02/24

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2 Answers

Lesley Lanag CMA CPA

by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

D. Income in excess of a desired minimum return.

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by Deleted user

According to my point of view

D. Result in managers rejecting profitable projects.

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