Which of the following must occur before one can calculate the return on investment ratios for the subunits of an organization?
A) All investment costs must be collected and divided according to the number of subunits in the organization
B) The total revenues must be allocated according to the number of subunits that will be calculating a return on investment
C) The total costs of the organization must be allocated evenly to all subunits of the organization
D) The corporate assets must be allocated appropriately to each responsibility subunit of the organization

Question

Quizplus · Accepted Answer

The return on investment (ROI) for subunits within an organization requires an accurate allocation of corporate assets to each responsibility subunit. This ensures that the calculation reflects the actual performance and use of assets by each subunit.

Which of the Following Must Occur Before One Can Calculate