A limitation of ROI as a measure of performance is that
a. it is a single comprehensive figure examining only one facet of the firm.
b. it provides an disincentive to use existing assets efficiently.
c. it provides a disincentive to acquire new assets.
d. it can be computed only after profits are totaled for a period.
e. it does not provide the basis for common comparison.
D
Business
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Indicate whether the statement is true or false a. True b. False
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In a period of rising costs, the last-in, first-out (LIFO) method results in higher cost of goods sold and lower net income than the first-in, first-out (FIFO) method
Indicate whether the statement is true or false
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