The Major Criticism of Using Return on Investment (ROI) for Evaluating

The major criticism of using return on investment (ROI) for evaluating the financial performance of business units considered investment centers is that ROI:

A) Gives managers of profitable business units an incentive to reject some projects that would benefit the organization as a whole.
B) Is not easily understood by managers.
C) Usually uses a blended rate of capital as the required rate of return.
D) Has a long-term (strategic) focus and therefore is not useful in terms of evaluating short-term performance.
E) Favors large units (investment centers) .