Answered: Provide 2 examples of situation where…

Provide 2 examples of situation where the use of ROI can lead to decisions which may harm the future competitiveness of a company.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 8EB: Though a high ROI is desired, what are some reasons that might lead to a low or decreased ROI?

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Provide 2 examples of situation where the use of ROI can lead to decisions which may harm the future competitiveness of a company.

Formula Formula ROI (%) = Net Income Principal Amount × 100

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