(b) Explain how the adoption of residual income (RI) using the annuity method of depreciation might prove to
be a superior basis for the management incentive plan operated by NCL plc.
(N.B. No illustrative calculations should be incorporated into your explanation). (4 marks)
正确答案：(b) The use of residual income as a basis for the management incentive plan operated by NCL plc would have the followingadvantages:Divisional management would be more willing to accept a project with a positive residual income and this would contributeto
