Which of the following statements is false regarding performance measurement in this Company?

Multiple Choice

• One major disadvantage of the return on investment approach is that it cannot be used to compare the performance of divisions of different sizes.

• Capital turnover measures the ability to generate revenue for each dollar invested in operating assets.

• In a well-designed balanced scorecard, financial performance measures should be integrated with non-financial measures.

• Because of operating leverage, an increase in unit sales ordinarily has the effect of increasing sales margin.

• Inspecting, moving, and queuing time add no value to the product and should be eliminated as much as possible.