Which One of the Following Is Not a Limitation Shared

question 127

Multiple Choice

Which one of the following is not a limitation shared by residual income (RI) and return on investment (ROI) divisional performance measures?

• A) They are both short-term performance indicators.
• B) They both may fail to capture significant value-creating activities of the organization.
• C) They are both subject to short-term manipulation on the part of divisional managers.
• D) Both are subject to a number of measurement issues that complicate their use in practice.
• E) They both relate, in percentage terms, earnings to the level of investment in each division.

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Definitions:

Postsecondary Institutions

Educational organizations that provide learning experiences following completion of high school, such as colleges and universities.

Accrediting Bureau of Health Education Schools

An organization responsible for providing accreditation to health education programs and institutions, ensuring they meet certain standards of quality.

Commission on Accreditation of Allied Health Education Programs

An organization that accredits postsecondary education programs in allied health professions in the United States.