Answered: Why have some described the reported…

Why have some described the reported savings in cost-avoidance measures as “soft,” “funny money,” and “easy to manipulate”?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 6DQ: What are two disadvantages of ROI? Explain how each can lead to decreased profitability.

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Why have some described the reported savings in cost-avoidance measures as “soft,” “funny money,” and “easy to manipulate”?

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why buying on margin is less riskier than short selling?