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 some undesirable behavior by managers.
C) Both ROI can increase without any change in operations because of depreciation and it can encourage some undesirable behavior by managers.
D) Neither ROI can increase without any change in operations because of depreciation nor it can encourage some undesirable behavior by managers.
Correct Answer:
Verified
Correct Answer:
Verified
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