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

Quizplus · Accepted Answer

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