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    Managerial Accounting Study Set 15
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    Exam 6: Performance Measurement in Decentralized Organizations
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    A Disadvantage of Using ROI to Evaluate Performance Is That
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A Disadvantage of Using ROI to Evaluate Performance Is That

Question 103

Question 103

True/False

A disadvantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.

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