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To determine the Return on Investment (ROI) for decentralized operations, managers and decision makers use the investment center (or unit center) income, not the net income. This investment center income is also called the unit's operating income.

What is the purpose of this distinction?

Select ALL that apply.

A

Operating income is produced from the investment center's normal, regular operations.

B

Operating income excludes income tax expense, unusual gains and losses, and extraordinary items.

C

Operating income excludes one-time (not regular or normal) gains and losses.

D

Net Income from Operations is a more appropriate measure.

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