Answer the following statements true (T) or false (F)
1. In addition to considering both the division's operating income and its average total assets, residual income incorporates top management's target rate of return.
2. Residual income compares the division's actual operating income with the minimum operating income expected by top management for the given size of the division's average total assets.
3. Residual income is used as a key performance indicator for evaluating an investment center's financial performance.
4. In general, calculating ROI based on the gross book value of assets gives managers an incentive to continue using old, outdated equipment.
1. TRUE
2. TRUE
3. TRUE
4. FALSE - Explanation: In general, calculating ROI based on the net book value of assets gives managers an incentive to continue using old, outdated equipment because its low net book value results in a higher ROI.
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Indicate whether the statement is true or false
Which of the following is an example of a situation that is NOT conducive to database marketing?
A) Rushbury Theater relies on the generosity of donors to keep functioning. B) Kenilworthy retails luxury handbags and leather accessories to a select clientele. C) 2Wheels sells its most profitable products to repeat customers. D) Uncle Jim's sells its range of snacks in stores throughout the country. E) PetZone offers obedience classes, a doggie daycare, and other services for pets in the Manhattan area.
Which of the following is NOT one of the phases of the CPFR process?
a. analysis b. strategy and planning c. execution d. control
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Answer the following statement true (T) or false (F)