Question: Explain and give an example as to how a manager can manipulate the return on investment figure in the short run. Why are these manipulations

Explain and give an example as to how a manager can manipulate the return on investment figure in the short run. Why are these manipulations bad for the company in the long run? Suggest some alternative performance evaluation and compensation schemes.

Step by Step Solution

★★★★★

3.50 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Managers may choose not to replace equipment when it needs to be rep... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

210-B-A-A-C (1597).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Give an example of how a manager can increase variable costs while decreasing fixed costs.

Explain the following terms and give an example of each: (a) Asset, (b) Liability, (c) Shareholders' equity, (d) Revenues, and (e) Expenses.

Explain and give an example of cost-plus pricing, target costing, and yield management pricing.

18. Explain and give an example as to how a manager can manipulate the return on investment figure in the short run. Why are these manipulations bad for the company in the long run? Suggest some...

Please see attached for a assignment. I found good examples to help me write this but unfortunately they're all outdated. I would like the years being looked at to be more current. I attached the...

LAW 2422 Could I get the answer for those questions? This is talking the about the LAW 2422 at RMIT LAW OF INVESTMENTS AND FINANCIAL MARKETS Tutorial Questions Tutorial 1 Revision / Introduction to...

A) what are the main points in this article B) what are the methods of measuring restaurant revenue management success? C) What strategies does Kimes (1999) discuss ? The goal of restaurant revenue...

give a summary of this article please!!! comment on its implications for manager rewards and investors returns. please answer I really need for class!!!! thank you!!!! Portfolio Performance...

I have asked three questions with my textbook chapter in which they come from. it would be greatly appreciated if you could help me answer these three questions. Thanks so much. :) 1. What is the...

7 Writing in the Workplace If writing must be a precise form of communication, it should be treated like a precision instrument. It should be sharpened, and it should not be used carelessly. Theodore...

An insurance company wants to design a homeowner's policy for mid-priced homes. From data compiled by the company, it is known that the annual claim amount, X, in thousands of dollars, per homeowner...

What was the purpose motivating regulators to impose interest ceilings on bank savings accounts? What effect did this eventually have on the money markets?

Copy each number line and show each inequality on the number line. 50 a 4

How do clients control their investments and when?

What is the client-server model?

Which statement is NOT true? a. Drill-down capability is an OLAP feature of data mining tools available to the user. b. The data warehouse should be separate from operational systems. c....

Describe the two-tier client-server model.

Your firm is considering building a new office complex. Your firm already owns land suitable for the new complex. The current book value of the land is $100,000; however, a commercial real estate...

Use the cash flow given and a MARR=12% to find the following: Use the cash flow given and a MARR= 12% to find the following: Determine the number of possible rate of return values in the net cash...

A new market opportunity has opened, and you expect that you will be able to double your sales in 2019. Assume that COGS, operating expenses, current assets and current liabilities maintain the same...