Multiple Choice
Which of the following statements about return on investment (ROI) is
A) ROI equals margin divided by investment turnover.
B) ROI is used to measure the performance of investment centers.
C) Seeking to maximize ROI can result in a conflict between the interest of a particular manager and the interest of the business as a whole.
D) Companies may minimize motivational problems by using original cost instead of book value in the denominator of the ROI formula.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: What are the different bases that can
Q42: One of the divisions of Phoenix Corporation
Q63: Indicate whether each of the following statements
Q67: Most large organizations establish responsibility centers
Q68: In the current year,the New Products Division
Q69: Thanks to generous financial support from an
Q97: Marcy is plant manager for Diversified Industries.She
Q102: Which of the following would increase residual
Q116: For Year 1,one division of Apex Company
Q131: The manager of Pearless Company's Toy Division