Which of the following statements is true? The use of return on investment (ROI) as a performance measure may lead managers to reject a project that would be favorable for the company as a whole. Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Which of the following statements is true? The use of return on investment (ROI) as a performance measure may lead managers to reject a project that would be favorable for the company as a whole. Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 7DQ: (a) Explain how return on investment might lead a divisional manager to reject new investments that...
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Which of the following statements is true?
- The use of
return on investment (ROI) as a performance measure may lead managers to reject a project that would be favorable for the company as a whole. - Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
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