Which of the statements regarding performance measurements is false?

Multiple Choice

A The residual income approach cannot be used to compare the performance of divisions of

different sizes.

B Turnover is a measure of efficiency and refers to the number of dollars of sales generated by inventory sold.

C One of the weaknesses of using ROI for performance measurement is that it may induce managers to make cost-cutting decisions that jeopardize the long-term viability of the segment or corporation.

D Margin refers to the percentage of income or profit generated by each dollar

of sales.