Which of the Following Is a Disadvantage of Comparing Managers

question 106

Multiple Choice

Which of the following is a disadvantage of comparing managers in different countries only on the basis of return on investment?

• A) The managers are not responsible for increasing the ROI of an organization.
• B) Managerial actions do not have a significant impact on firms' profitability.
• C) Return on investment is not a valid indicator of organizational profitability.
• D) Environmental factors also contribute to ROI of firms and these factors differ.

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Definitions:

Fire Insurance

An insurance policy that provides coverage against losses or damages caused by fire.

Product Cost

The total cost associated with making a product, including direct materials, direct labor, and overhead.

Manufacturing Plant

A facility used for industrial production of goods, where raw materials are transformed into finished products.

Work in Process

Work in process consists of items in production but not yet complete, often accounted for in manufacturing firms to track inventory through different stages.