An advantage of ROI as a measure of performance is that
A) it is sensitive to book value.
B) it provides an incentive to use existing assets efficiently.
C) the time span of concern in short range.
D) the business cycle strongly affects ROI performance often despite managerial performance.
E) it is a steering control.

Question

Quizplus · Accepted Answer

ROI (Return on Investment) encourages managers to use existing assets efficiently to maximize returns, aligning their performance with the company's financial goals.

An Advantage of ROI as a Measure of Performance Is