Using what measure may cause a manager to reject a project that would be profitable for the company as a whole?
A)ROI
B)Residual income
C)Operating income
D)EVA

Question

Quizplus · Accepted Answer

ROI (return on investment) is a common measure used to evaluate the profitability of a project. However, it only considers the project's return relative to its cost and doesn't take into account the broader impact on the company. Therefore, a manager may reject a profitable project based on its low ROI if it doesn't align with the company's strategic goals or if it would require too much investment relative to its return.

Using What Measure May Cause a Manager to Reject a Project