Multiple Choice
Which of the following statements is true?
I.Managers have a tendency to overinvest when return on investment is used as a performance measure.
II.Managers have a tendency to underinvest when profit is used as a performance measure.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q90: The manager of the Beach Division of
Q91: Why is return on investment better than
Q92: Which of the following performance measures is
Q93: If responsibility centers are ranked in order
Q94: Tomlinson Tech has a cost of capital
Q96: Which of the following is not one
Q97: Economic value added is calculated as the
Q98: Why is an adjustment made to net
Q99: Tomlinson Tech has a cost of capital
Q100: Hardin Division of WestCo has sales of