Which of these is a of the return on investment performance measure?
A) all the options are disadvantages of the ROI measure
B) ROI does not consider divisions that are different in type or size
C) the use of ROI can least to suboptimal decision making
D) divisional managers can manipulate ROI by decreasing the investment base
Correct Answer:
Verified
Q30: As return on investment is a short-term
Q31: Under the opportunity cost principle,when calculating ROI
Q32: Using written-down value as the investment base
Q33: If the purpose of an entity is
Q34: Investment turnover is sometimes called.
A)asset turnover
B)investment base
C)profit
Q36: Which of these is regarded as
Q37: If investment is $300 000,credit sales are
Q38: If profit before tax is $320 000,required
Q39: Which of these is an investment base
Q40: If return on investment is 15.5% and
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