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.

Question

Quizplus · Accepted Answer

Financial KPIs like ROI and EVA tend to focus only on the short term, which can lead to decisions that are not beneficial in the long run. This is a drawback because companies should aim to create sustainable value for all stakeholders, not just maximize short-term financial performance.

One of the Key Drawbacks of Using Financial KPIs Like