Before applying ROI as a control measure,the manager must answer the following question(s):
A)How does the firm measure revenues?
B)What costs does the firm deduct in measuring divisional operating costs?
C)How does the firm measure investment?
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the questions are important in determining the appropriate use and interpretation of ROI as a control measure. A clear understanding of revenue measurement, divisional operating costs, and investment measurement are necessary in calculating ROI accurately and using it effectively to evaluate performance.

Before Applying ROI as a Control Measure,the Manager Must Answer