An Advantage of ROI as a Measure of Performance Is

question 111

Multiple Choice

An advantage of ROI as a measure of performance is that

• A) it is sensitive to book value.
• B) it provides an incentive to use existing assets efficiently.
• C) the time span of concern is short range.
• D) the business cycle strongly affects ROI performance often despite managerial performance.
• E) it is very sensitive to depreciation policy.

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