Which of the following statements concerning performance evaluation tools used in decentralized operations is correct?...
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Accounting
Which of the following statements concerning performance evaluation tools used in decentralized operations is correct? A segment's return on investment is calculated by multiplying a segment's residual income by the capital turnover ratio. Performance reports can only be used to evaluate the performance of investment centers. Segment margin is calculated by subtracting all traceable fixed costs from the segment's contribution margin. A negative residual income demonstrates that a segment's return on investment is greater than the company's target rate of return. Segmented income statements are also referred to as budget versus actual reports
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