A Limitation of ROI as a Measure of Performance Is

Multiple Choice

A limitation of ROI as a measure of performance is that

A) it is a single comprehensive figure examining only one facet of the firm.
B) it provides disincentive to use existing assets efficiently.
C) it provides a disincentive to acquire new assets.
D) it is very sensitive to depreciation policy.
E) it does not provide the basis for common comparison.