won\'t have the full ACTG 2300 Quiz Started: Jan 20 at 10:25am Quiz Instructions

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won't have the full ACTG 2300 Quiz Started: Jan 20 at 10:25am Quiz Instructions 1 pts Question 7 The D'Azure Company uses residual income to measure the performance of one of its divisional managers. Which of the following would increase the division manager's performance measure? an increase in the minimum required return a decrease in the division's net operating income a decrease in the division's average operating assets an increase in the division's average operating assets • Previous Next » Not saved Submit Quiz

Explanation / Answer

Answer: Option D( an increase in the divisions average operating assets)

Explanation: The option d an increase in the divisions average operating assets because here the company follows residual income as the measure of performance i.e.,residual income calculation is based on the operating assets multiplied by cost of capital.Therefore as this is the reason option D is correct.

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