True/False
Return on investment cannot be used effectively to evaluate profit centers because it motivates managers to make suboptimal decisions from the viewpoint of the organizations' owners.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: THN Corporation reported operating income of $30,000,
Q26: Responsibility accounting includes:<br>I. Monitoring primarily for mistakes<br>II.
Q41: Division S sold a part to both
Q74: Which of the following transfer pricing systems
Q84: How are research and development costs treated
Q86: ROI will decrease if<br>A) Sales increase<br>B) Investment
Q87: (CMA) Responsibility accounting defines an operating center
Q88: Residual income is<br>A) The same as return
Q93: Investment center managers are held responsible only
Q94: Suppose an office building is owned for