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The Use of Return on Investment as a Performance Measure

question 91

True/False

The use of return on investment as a performance measure may lead managers to make decisions that are not in the best interests of the company as a whole.


Definitions:

Priority Rules

Guidelines or criteria used to determine the sequence of jobs in a manufacturing or service context.

Process Time

The duration required to complete a specific process or operation within a workflow.

Due Date

The specified date by which a task, project, or payment is expected to be completed or received.

LPT

An abbreviation often used in manufacturing or project management, commonly standing for Longest Processing Time, a heuristic for scheduling.

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