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Which of the following statements is NOT a benefit of return on investment (ROI) as a measure of the financial performance of divisions? a. It is a relative measure and allows divisions of different sizes to be compared b. The percentage calculated can be compared with the return required by investors. c. The performance of a division can be tracked over time (since a percentage is calculated). d. It can provide a disincentive to invest, or force the sale of assets, in order to better the return

Which of the following statements is NOT a benefit of return on investment (ROI) as a measure of the financial performance of divisions? a. It is a relative measure and allows divisions of different sizes to be compared b. The percentage calculated can be compared with the return required by investors. c. The performance of a division can be tracked over time (since a percentage is calculated). d. It can provide a disincentive to invest, or force the sale of assets, in order to better the return

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 13MC: Which of the following measures the profitability of a division relative to the size of its...
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Which of the following statements is NOT a benefit of return on investment (ROI) as a measure of the financial performance of divisions?

a. It is a relative measure and allows divisions of different sizes to be compared

b. The percentage calculated can be compared with the return required by investors.

c. The performance of a division can be tracked over time (since a percentage is calculated).

d. It can provide a disincentive to invest, or force the sale of assets, in order to better the return.

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