Which of the following would be an argument in favor of using residual income models in performance measurement?
a. All forms of residual income are consistent with discounted net cash flows for any method of depreciation.
b. Residual income focuses on historical performance.
c. The determination of residual income is dependent on an accurate estimate of the cost of capital.
d. Residual income recognizes that all capital, debt as well as equity, has a cost.
ANSWER: D
You might also like to view...
Toys "R" Us unsuccessfully targets the Japanese toy market by bypassing layers of distribution and adopting a warehouse style of selling that is similar to its U.S. approach
Indicate whether the statement is true or false
The degree to which a measure is free from random error is its reliability.
Answer the following statement true (T) or false (F)
Which of the following is a driver of wireless growth?
A. Universal access to information and applications. B. The invention of the micro hard drive. C. Gis. D. All of the above.
A relationship _____ indicates the number of entities or participants associated with a relationship
Fill in the blank(s) with correct word