menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Cost Management Measuring
  4. Exam
    Exam 16: Performance Evaluation and Compensation
  5. Question
    Return on Investment Cannot Be Used Effectively to Evaluate Profit
Solved

Return on Investment Cannot Be Used Effectively to Evaluate Profit

Question 8

Question 8

True/False

Return on investment cannot be used effectively to evaluate profit centres because it motivates managers to make suboptimal decisions from the viewpoint of the organizations' owners.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: Basing executive compensation on accounting earnings:<br>I. Is

Q5: Why might some organizations use both ROI

Q6: Two divisions of Interspatial Company report summary

Q9: Indicate whether each item listed below is

Q10: Bellingham Division has a required rate of

Q11: An advantage of centralized decision making is:<br>A)More

Q12: Managers are held responsible for revenues in:<br>I.

Q13: Economic value added uses "adjusted after-tax operating

Q38: Which of the following responsibility centres can

Q55: Responsibility accounting is the process of using

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines