What is the biggest disadvantage of using ROI to evaluate investment centers?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

See More Books

Question Posted: Apr 03, 2015 10:41 AM

See More Questions

What is a major disadvantage of using ROI to evaluate investment and company performance?
What is the major disadvantage of using ROI to evaluate the performance of investment centers?
What is a partnership, and what is the biggest disadvantage of this form of business organization? How can this disadvantage be avoided?
MAX DIVISOR TREE Let a tree exists with the root value N. The property of this tree is that each of its nodes branches out to the nodes with a value equal to one of its divisors (except 1 and the...
Clean Sweep Ltd. manufactures several different brands of vacuum cleaners from hand-held models to built-in central vacuums. It sells its products to distributers on credit, giving customers 30 days...
Customer profitability, customer cost hierarchy. Ramish Electronics has two retail cus tomers and two wholesale customers. Pertinent information relating to each customer for 2008 follows (all...
A machine was purchased on 01 January 1990 for Rs 5 lakh. The total cost of all machinery inclusive of the new machine was Rs 75 lakh. Further particulars are available as follows: Expected life of...
During the current year ending on December 31, BSP Company completed the following transactions: a. On January 1, purchased a patent for $28,000 cash (estimated useful life, seven years). b. On...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 130,000 $ 127,000 Accounts receivable 339,000 482,000...
You are interested in opening a new bakery in town. You are considering locations, and combinations of inputs to determine whether you should open, if you would be successful, and where you should...
What does ROI measure?
How is RI calculated?
The Platter Valley factory of Bybee Industries uses a three-variance analysis of the total factory overhead variance. Budgeted variable factory overhead $ 15,000 Budgeted direct labor hours 2,500...
I need help with discussion posts that respond to 3 of these comments. 2 of them being the first on each picture. RUBRIC: articles to mention Coleman, R., & Banning, S. (2006). Network TV news'...
2. Best Use of Scarce Resource DigiCom Corporation produces three sizes of television sets: 12-inch screen, 26-inch screen, and 40-inch screen. Revenue and cost information per unit for each product...
Gunther invested $15,000 into a segregated fund with a 65% maturity guarantee 10 years ago. The fund is now maturing and has a current market value of $22,261. Gunther decides to withdraw his...
(a) Consider the following financial data (in millions of dollars) for Costello Laboratories over the period of 2014-2018: Year Sales Net income Total assets Common equity 2014 $3,800 $500 $3,900...
The Pizza Pie 'N Go sells about 2300 one-topping pizzas each month. The circle graph displays the most requested one-topping pizzas, by percentage, for one month. Most Popular One-Topping Pizzas...
In mid-2011, Sino-Forest Corporation was a company with timber operations in China, including tree plantation (holding of timber for appreciation and/or harvesting), log and wood products trading,...
Using the information presented in Problem 13.4B, prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities using the...
The alveoli in your lungs can be modeled as conventional pin fins. Each fin is $10 \mu \mathrm{m}$ in diameter and $100 \mu \mathrm{m}$ long. The fin is designed to pick up oxygen from the air...
On July 31, 2023, Magnuss Muffins paid $18,000 for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a year-end...
On November 1, 2023, Freya Albatters orthodontic office received a $2,500 prepayment from a client for dental work to be performed on November 22. The appointment got postponed until January 15,...
Give the entry to record accrued interest revenue of $7,200.
Tom holds a 5-yr 10%-coupon bond, while his friend Jackson holds a 6- year 8%-coupon bond. They are both concerned about interest rate risk but they do not fully understand how it affects them. Can...
please help Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] [The following information applies to the questions displayed below.] Comparative financial statements for Weaver...
A firm has 1000 shareholders, each of whom own $59 in shares. The firm uses $28000 to repurchase shares. What percentage of the firm did each of the remaining shareholders own before the repurchase,...

What is the biggest disadvantage of using ROI to evaluate investment centers?

Question:

Step by Step Answer:

ROI has one major drawback Evaluating division managers ...View the full answer

Horngrens Financial and Managerial Accounting

Students also viewed these Managerial Accounting questions