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Which of the following is a problem with the ROI calculation?

A. Increased profits cause ROI to decrease.

B. Investment in assets is measured using current value costs.

C. An undue emphasis on ROI may lead managers to delay the purchase of modern equipment needed to stay competitive.

D. It does not hold managers responsible for assets.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947644

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