A weakness of RAROC is:
A) reduces agency costs
B) can be used to evaluate management performance
C) use on product lines with shared input costs
D) use on product lines with positive profit rates

Question

Quizplus · Accepted Answer

RAROC (Risk-Adjusted Return On Capital) can be challenging to apply to product lines with shared input costs because it requires allocating those costs accurately to different products or services, which can be complex and subjective.

A Weakness of RAROC Is