Which of the Following Statements Does Not Represent a Limitation

question 42

Multiple Choice

Which of the following statements does not represent a limitation of using return on investment (ROI) for measuring and evaluating performance?

• A) ROI uses accounting income which is based on historical costs.
• B) ROI cannot be used to compare divisions of different sizes.
• C) ROI has the potential to create goal congruence problems.
• D) ROI fails to align some costs incurred in one period with the benefits received in another perioD.
• ROI can be used to compare different sized divisions-this is an advantage of ROI.

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Definitions:

Researchers Control

Refers to the various methods and techniques researchers use to minimize influences that could deviate or invalidate the results of their study.

Observer Bias

A type of research bias that occurs when an observer's expectations, beliefs, or preferences influence the outcomes of a study or experiment unintentionally.

Observer Drift

A phenomenon in research where there is a gradual shift in how observers interpret or code data over time, potentially affecting the reliability of the results.

Pygmalion Effect

The phenomenon in which higher expectations lead to an increase in performance.