One of the Key Drawbacks of Using Financial KPIs Like

question 138

Multiple Choice

One of the key drawbacks of using financial KPIs like ROI and EVA is that:

• A) they are difficult and complex to calculate.
• B) they change from period to period.
• C) they cannot be readily compared to other companies.
• D) they focus only on the short term.

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Definitions:

Skeptical

Being skeptical involves doubting or questioning the validity or authenticity of something.

Well-defined

Clearly described or outlined, with no ambiguity or confusion about the nature or limits of something.

Starting Information

The initial data or clues available to solve a problem or undertake a task, crucial for determining the direction and methods for reaching a solution or goal.

Goal

An idea of a future or desired result that a person or a group of people envision, plan, and commit to achieve.