1. Delmar Corporation is considering the use of residual incomeas a measure of t

1. Delmar Corporation is considering the use of residual incomeas a measure of the performance of its divisions. Which majordisadvantage of this method should the company consider beforedeciding to institute it?This method does not take into account differences in the size ofdivisions.Investments may be adopted that will decrease the overall return oninvestment.The minimum required rate of return may eliminate desirableinvestments.Residual income does not measure how effectively the divisionmanager controls costs.