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:

Bill Gates

Co-founder of Microsoft Corporation, an influential American businessman, software developer, and philanthropist.

Strong Culture

An organizational environment characterized by well-defined values, beliefs, and norms that shape employees' behaviors and contribute to a cohesive work atmosphere.

Treat

To deal with or think about something in a specific way, or to provide medical care.

Employees

Employees are individuals who are hired by businesses or organizations to perform work in exchange for compensation, encompassing a wide range of roles and responsibilities.