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20 April, 00:40

The best measure for evaluating the effectiveness of a manger in an investment center would be A. residual income measures B. success in controlling costs C. current ratio measures D. success in meeting budgeted revenues

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  1. 20 April, 02:54
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    A. Residual income measures

    Explanation:

    The residual income approach is the measurement of the net income that an investment earns above the threshold established by the minimum rate of return assigned to the investment. It can be used as a way to approve or reject a capital investment, or to estimate the value of a business.

    Examples of residual income include real estate investing, stocks, bonds, investment accounts, and royalties.
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