alleryStart learning →Which metric most commonly judges an investment centre manager?
ACost variance
BSales volume
CInvestment return
DUnit contribution
Answer & Solution
Correct answer: C. Investment return
Because the unit controls investment decisions, ROI is the usual performance yardstick.
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Related questions
Group units in tax rates of 25% and 40%. Shifting Rs 10 lakh profit to the lower-tax unit Why can ROI figures be manipulated?A known weakness of ROI as a measure is that it is not what?A division earns Rs 36 lakh profit on Rs 240 lakh invested. Its ROI is what?The cost of capital is best described as what?RONA is 16%, required return 12% and net investment Rs 800 lakh. EVA?NOPAT of Rs 72 lakh on capital of Rs 400 lakh gives RONA of what?When is value created, according to the EVA idea?