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Return on investment (ROI) is a performance measure that requires managers to respond to several factors that are under theirInfluence or control Decisions Intended to influence ROI are often from a short-term perspective and may conflict with the long-term objectives of the organization. This lack of goal congruence can be minimized by
- A . providing the manager with limitationson what can be used to influence the factors involved in computing the ROI.
B. using the two components of ROI (investment turnover and return on sales) instead of only ROI.
C. allowing different minimum returns for different investments.
D. requiring multiple-year measures of ROI and evaluating these results along with the residual incomes from the same periods.
Suggested Answer: D
Posted : 05/01/2023 10:21 am