alleryStart learning →Why can ROI figures be manipulated?
AFree choice of inputs
BAudit is mandatory
CFormula is rigid
DIt ignores profits
Answer & Solution
Correct answer: A. Free choice of inputs
Users can pick the period, overheads and income items, so comparable figures are not guaranteed.
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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 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?What does the capital charge in EVA represent?