Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why do some companies prefer the use of economic profit over return on investment in decisionmaking? A. The data needed to calculate return on investment

Why do some companies prefer the use of economic profit over return on investment in decisionmaking?

A. The data needed to calculate return on investment are not always available.

B. The calculations for economic profit are easier.

C. Return on investment can motivate managers to make investment decisions that are not in the best interests of the company as a whole.

D. The concept behind economic profit is more logical.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Logistics Audit Methods Organization And Practice

Authors: Piotr Buła, Bartosz Niedzielski

1st Edition

1032461268, 978-1032461267

More Books

Students also viewed these Accounting questions