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:

Peer Economy

An economic model based on sharing access to goods and services between individuals, often facilitated through online platforms.

Vehicle-Sharing Service

A model of car rental where individuals can rent vehicles for short periods of time, often by the hour, facilitating urban mobility and reducing private car ownership.

Peer-to-Peer Lender

an online platform that matches people willing to lend money directly to individuals or businesses seeking to borrow, bypassing traditional financial institutions.

Shared Economy

An economic model where assets and services are shared between private individuals, typically via the internet.