Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 15% in 2020. Whichof the following is not an advantage of ROI?O It discourages excessive investment in operating assets.O It encourages cost efficiency.O It encourages managers of departments with high ROIS to invest in average ROI projects.OIt encourages managers to pay careful attention to the relationships among sales, expenses, andinvestment.

Return on investment is return earned in term of percentage of average assets employed.

Answered: Flamengo Co is a sporting goods…

Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 15% in 2020. Which of the following is not an advantage of ROI?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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