Which of the Following Situations Is Most Likely to Pose

Multiple Choice

Which of the following situations is most likely to pose a problem for companies that use return on investment (ROI) as a measure of a manager's performance?

A) Managers may be encouraged to purchase more operating assets than they otherwise should.
B) Managers may be discouraged from purchasing operating assets that could improve overall profitability.
C) Managers may be discouraged from reducing their division's costs.
D) Managers may be discouraged from paying off debt in order to reduce interest costs.