The inability to compare divisions of different sizes is a major disadvantage of ______. Multiple choice question. residual income only both residual income and ROI ROI only neither residual income nor ROI

Respuesta :

The financial metric that has the major disadvantage of failing to compare divisions which have different sizes is residual income.

What is residual income?

It is a method of analyzing companies that checks for the income that a division gets after it produces a good or service that brings in income.

This metric does not take the size of the department into account which means that larger departments are often favored because they would have produced more goods and services.

In conclusion, option A is correct.

Find out more on residual income at https://brainly.com/question/20350971.