Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 23 - Performance Measurement, Compensation, and Multinational Considerations - Assignment Material - Questions - Page 899: 23-4

Answer

I agree with the statement. Return on Investment (ROI) and Residual Income (RI) are related performance measures, but they are not identical. ROI is a percentage-based measure that assesses the efficiency of investments, while RI is an absolute monetary amount that evaluates performance against a specific required return. The key distinction lies in their presentation and interpretation.

Work Step by Step

I agree with the statement. Return on Investment (ROI) and Residual Income (RI) are related performance measures, but they are not identical. ROI is a percentage-based measure that assesses the efficiency of investments, while RI is an absolute monetary amount that evaluates performance against a specific required return. The key distinction lies in their presentation and interpretation.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions