A Disadvantage of Using ROI to Evaluate Performance Is That

question 103

True/False

A disadvantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.

---

Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior or increases its likelihood of being repeated.

Nagging

The act of persistently annoying or finding fault with someone, often about trivial matters, in a manner that is repetitive and often irritating.

Sweet Dessert

A course that typically comes at the end of a meal, often characterized by its sweetness or richness.

Report Card

A document summarizing a student's performance academically over a specific period, usually including grades or marks.