Which of the following is a disadvantage of ROI?
A)It discourages managers from investing in projects that would decrease their ROI.
B)It discourages managers from paying careful attention to the relationships among sales,expenses,and investment.
C)It discourages cost efficiency.
D)It discourages excessive investment in operating assets.

Question

Quizplus · Accepted Answer

ROI may incentivize managers to avoid investing in projects that would decrease their ROI, even if these projects are beneficial for the company in the long run. This can lead to missed opportunities and stifle innovation.

Which of the Following Is a Disadvantage of ROI