Which of the following is not relevant when evaluating managers using return on investment?
A) Allocating corporate costs to divisions
B) Measuring division assets
C) Measuring division revenues
D) Measuring division costs

Question

Quizplus · Accepted Answer

Division assets, revenues, and costs must be measured to calculate division profits; however, it is not generally appropriate to allocate corporate costs to division managers who cannot control those costs.

Which of the Following Is Not Relevant When Evaluating Managers