most significant drawback of evaluating investment centers using RO

Q: What is the chief disadvantage of ROI as an investmentcenter performance measure? How does the…

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Q: Explain why having a balanced scorecard is so important to having a good return on investment.

A: Balanced scorecard is crucial for achieving a good return on investment (ROI) because it provides a…

Q: How can we maximize our return on investment (ROI) and what role does a balanced scorecard play?

A: The return on investment is the measure of total return upon a particular amount of investment made…

Q: Why is it critical to examine profitability, with a particular emphasis on return on investment?…

A: Introduction: The term profitability refers to a profit-measurement metric. An analysis is performed…

Q: What formula do you use to calculate ROI?

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Q: What does ROI measure?

A: Return on Investment: Return on Investment is a profitability measure which determines a company's…

Q: What is the incentive of management in computing efficiency ratios?

A: Efficiency ratios examine a company's ability to use its assets and handle its commitments…

Q: Explain why the balanced scorecard is so crucial for optimising return on investment.

A: The balanced scorecard is a strategic management tool that helps organizations to align their…

Q: What is the main drawback of using income from operations to measure the effectiveness of investment…

A: Introduction: Investment centers are firms that invest in other businesses to increase their…

Q: What is the fundamental flaw in utilizing income from operations as a success metric for investment…

A: Introduction: Investment centers are companies that make investments to boost their profits.

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: What is the primary disadvantage of utilizing revenue from operations to evaluate investment…

A: Investment centers are businesses that invest in other companies to boost their profits.

Q: How can one use a balanced scorecard to maximize ROI?

A: The Balanced Scorecard provides several benefits to organizations, such as improved performance,…

Q: What factors affecting ROI does the DuPont method of protability analysis highlight?

A: Return on Investment (ROI): It is an accounting measure of income divided by an accounting measure…

Q: Just how can the Balanced Scorecard improve return on investment?

A: A framework for measuring strategic performance, the balanced scorecard assists businesses in…

Q: Show and contrast how return on investment and residual income are used to evaluate the performance…

A: ROI  (return on investment =  ( Net Profit / Cost of the investment) X  100    Residual income =…

Q: What is the most significant drawback of utilizing ROI to assess investment centers?

A: Return on Investment:  The investment opportunity with the most significant rate of Return is…

Q: What is the major shortcoming of using income from operations as a performance measure for…

A: Investment center: A department or unit or division of a corporation where its manager is assigned…

Q: What are the drawbacks to ROI? Give examples of each

A: Return on Investment-ROI  Return on investment is frequently questioned as a performance indicator.…

Q: How can we maximise our return on investment (ROI) and what role does a balanced scorecard play?

A: The return on investment is the measure of total return upon a particular amount of investment made…

Q: Why are statistical approaches and tools important in investment decision-making?

A: This question explains about the statistical approaches and tools that are important in investment…

Q: Which of the following is not a measure that management can use in evaluating and controlling…

A: The investment centers are typically very large divisions of a company. Investment center managers…