Which of the following statements about return on investment (ROI) is
A) ROI equals margin divided by investment turnover.
B) ROI is used to measure the performance of investment centers.
C) Seeking to maximize ROI can result in a conflict between the interest of a particular manager and the interest of the business as a whole.
D) Companies may minimize motivational problems by using original cost instead of book value in the denominator of the ROI formula.
Correct Answer:
Verified
Q27: When using residual income as a project-screening
Q28: Huang Company reported the following information
Q28: Which of the following would increase residual
Q29: Joseph Company reported the following information
Q31: To avoid suboptimization,many companies prefer to evaluate
Q32: Campbell Candy Corporation desires a 16%
Q33: Payne Company reported the following information
Q34: Howard Company provided the following selected
Q35: Fairpoint Products provided the following selected
Q39: Select the incorrect statement concerning the application
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents