Which of the following promotes goal congruence (aligned goals between segment managers and top management)? Residual Income as a performance evaluation measure O Return on Investment as a performance evaluation measure A positive residual income means O the investment has exceeded management's expectations based on their target rate of return. O the investment has not met management's expectations based on their target rate of return. O A positive or negative residual income does not tell us whether management's expectations were met.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following promotes goal
congruence (aligned goals between segment
managers and top management)?
Residual Income as a performance
evaluation measure
O Return on Investment as a performance
evaluation measure
A positive residual income means
O the investment has exceeded
management's expectations based on
their target rate of return.
O the investment has not met
management's expectations based on
their target rate of return.
O A positive or negative residual income
does not tell us whether management's
expectations were met.
Transcribed Image Text:Which of the following promotes goal congruence (aligned goals between segment managers and top management)? Residual Income as a performance evaluation measure O Return on Investment as a performance evaluation measure A positive residual income means O the investment has exceeded management's expectations based on their target rate of return. O the investment has not met management's expectations based on their target rate of return. O A positive or negative residual income does not tell us whether management's expectations were met.
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