Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of:

A) return on investment.
B) residual income.
C) contribution margin.
D) segment margin.

Question

McKenna Schlueter · Accepted Answer

Final Answer : A, Explanation :  If a manager is evaluated solely on the basis of return on investment (ROI), they may prioritize investments that have high short-term returns, even if they don't align with the strategy or long-term goals of the entire company. This can result in the rejection of investment opportunities that may have a lower ROI in the short term, but would have greater benefit for the company as a whole in the long term.

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of:

A) return on investment.
B) residual income.
C) contribution margin.
D) segment margin.

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Learning Objectives

Learning Objectives

Related questions

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of:A) return on investment.B) residual income.C) contribution margin.D) segment margin.

Definitions

Learning Objectives

Learning Objectives

Related questions

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of:

A) return on investment.
B) residual income.
C) contribution margin.
D) segment margin.