Which of the following promotes goalcongruence (aligned goals between segmentmanagers and top management)?Residual Income as a performanceevaluation measureO Return on Investment as a performanceevaluation measureA positive residual income meansO the investment has exceededmanagement's expectations based ontheir target rate of return.O the investment has not metmanagement's expectations based ontheir target rate of return.O A positive or negative residual incomedoes not tell us whether management'sexpectations were met.

1) Correct option is return on investment as a performance evaluation measure Explanation: The…

Answered: Which of the following promotes goal…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 9MC: A good performance measurement system will include which of the following? A. short-term goals B....

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Similar questions

Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?
Which of the following is not a measure that management can use in evaluating and controlling investment center performance? a.residual income b.negotiated price c.income from operations d.rate of return on investment
What is the chief disadvantage of ROI as an investmentcenter performance measure? How does the residualincome measure eliminate this disadvantage?
Calculate ROI using pretax operating income instead of net income. Why is there a big difference, and what does this mean for performance evaluation?
A good performance measurement system will include which of the following? A. short-term goals B. long-term goals C. short-term and long-term goals D. no goals at all
Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? Multiple Choice A reduction in expenses. An increase in net operating income. An increase in operating assets.
Why is it critical to examine profitability, with a particular emphasis on return on investment? Consider the ROI breakdown while considering your answer.
In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem?
Why is profitability analysis necessary, with a particular emphasis on return on investment? When considering your answer, consider the ROI breakdown.
Q.Do you agree with Petrocal’s decision not to include measures of changes in operating income from productivity improvements under the financial perspective of the balanced scorecard? Explain briefly.
What choice on the following PPF is considered productively inefficient? A В F E Select the correct answer below: C D E Economic Output
The following statements are true regarding the financial perspective EXCEPT:a. Financial performance can be improved through two basic approaches – revenuegrowth and productivity.b. Financial objectives typically relate to productivity.c. A financial measure might be net income.d. A financial objective might be to offer low process to satisfy and retain price-sensitivecustomers.

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