The major shortcoming of operating income as an investment center performance measure is that it ignores the amount of assets invested in the center.

Name: The major shortcoming of operating income as an investment center performance measure is that it ignores the amount of assets invested in the center.
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Question

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Operating income does not take into account the assets invested in the center, which can lead to an incomplete assessment of the center's performance relative to the resources it uses.

The Major Shortcoming of Operating Income as an Investment Center