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  • Exam Code: C_ARCIG_2108
  • Exam Name: SAP Certified Application Associate - SAP Ariba Integration with Cloud Integration Gateway

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NEW QUESTION: 1
When comparing the residual income of several investment centers the validity of comparisons may be destroyed by:
A. Peculiarities of each investment center.
B. Common amounts of invested capital for each investment center.
C. Consistent use of an imputed interest rate.
D. Differences in the relative amount of income.
Answer: A
Explanation:
Residual income is income of an investment center, minus an imputed interest charge for invested capital. The theory is that earning an income greater than residual income indicates that expansion is desirable. However, comparisons of investment centers based on residual income may be misleading because of differences in products, markets, costs, and local conditions.

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