The major criticism of using return on investment (ROI) for financial control is that it: a. gives managers an incentive to reject projects with an ROI greater than the company's required rate of return but less than the department's current ROI b. usually uses the blended rate of capital as the required rate of return c. encourages competition among segment managers d. is a measure of overall performance Clear my choice Performance measures for financial control include all of the following except: a. reduced cycle times b. ROI (return on investment) and economic value added c. profit d. cost Clear my choice Assume an organization's cost of capital is 8% and Department A currently has a 12% return on investment (ROI). The manager of Department A, who is evaluated on ROI, would most likely accept an investment that is expected to return a. more than 8%. b. more than 12%. c. more than 8% but less than 12%. d. less than 12%. Clear my choice