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Which of the Following Is NOT an Advantage of ROI

Question 133

Multiple Choice

Which of the following is NOT an advantage of ROI?


A) It encourages managers of departments with high ROIs to invest in average ROI projects.
B) It encourages managers to pay careful attention to the relationships among sales, expenses, and investment.
C) It encourages cost efficiency.
D) It discourages excessive investment in operating assets.

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