A Positive Result That Stems from the Use of Return

question 34

Multiple Choice

A positive result that stems from the use of return on investment (ROI) is that it encourages managers to focus on

• A) the relationship among sales, expenses, and investment.
• B) cost efficiency.
• C) operating asset efficiency.
• D) the efficient use of resources in generating income.
• E) All of these.

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Definitions:

Inaccuracies

Errors or mistakes in information or details.

Schemas

Frameworks of knowledge and assumptions that we have about people, objects, and events.

Bartlett

Frederic Bartlett, a pioneering cognitive psychologist known for his work on memory and cognition, particularly on how people reconstruct the past.

Misinformation Effect

Erroneous recollections of witnessed events that result from information learned after the fact.