Evaluating Segments Based on the Segment's Return on Investment Will

question 81

Multiple Choice

Evaluating segments based on the segment's return on investment will

• A)encourage each segment's manager to select only projects that are above the company's current return on investment.
• B)encourage each segment's manager to only select projects that are above the individual segment's current return on investment.
• C)encourage each segment's manager to select only projects below the company's required rate of return.
• D)encourage managers to select only projects below the segment's cost of capital.