Return on investment (ROI) may not be fully controllable by a manager because of committed costs.

Name: Return on investment (ROI) may not be fully controllable by a manager because of committed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

ROI is calculated as net income divided by invested capital. However, some costs may be committed or fixed, such as rental fees or salaries, which are not directly controllable by managers. This can limit their ability to control ROI.

Return on Investment (ROI) May Not Be Fully Controllable by a Manager