What is a major disadvantage of using ROI to evaluate investment and company performance?
What is a major disadvantage of using ROI to evaluate investment and company performance?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 6DQ: What are two disadvantages of ROI? Explain how each can lead to decreased profitability.
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What is a major disadvantage of using ROI to evaluate investment and company performance?
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