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Which of the Following Is a Shortcoming of ROI as a Performance

Question 173

Multiple Choice

Which of the following is a shortcoming of ROI as a performance measure?


A) ROI can increase without any change in operations because of depreciation.
B) It can encourage desirable behavior by managers.
C) ROI can increase without any change in operations by acquiring more capital assets.
D) It can encourage managers to increase sales revenue.

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