Which of the Following Statements Does Not Represent a Limitation

question 139

Multiple Choice

Which of the following statements does not represent a limitation of using return on investment (ROI) for measuring and evaluating performance?

• A) ROI uses accounting income which is based on historical information.
• B) ROI cannot be used to compare divisions of different sizes.
• C) ROI has the potential to create goal congruence problems.
• D) ROI fails to align some costs incurred in one period with the benefits received in another period.

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Definitions:

Organic Monomers

Simple molecules that can bind chemically to other molecules to form polymers, essential in the creation of complex biological structures.

Interstellar Clouds

Large accumulations of gas, dust, and plasma in space, often serving as the birthplaces of stars.

Organic Compounds

Chemical compounds made up of carbon atoms bonded with other elements and primarily found in living systems.

Organic Subunits

Basic building blocks of organic molecules, which include structures like amino acids, nucleotides, and monosaccharides.