Respond that the following statements are TRUE or FALSE: 1) Companies evaluate investment centers using the same
Question:
Respond that the following statements are TRUE or FALSE:
1) Companies evaluate investment centers using the same measures as the profit centers.
2) Operating income alone does not indicate how efficiently a segment is using its assets.
3) Managers of investment centers are responsible not only for generating profits, but also for ensuring efficient use of assets of the investment center.
4) To adequately evaluate an investment center's financial performance, summary performance measures that include both the division's operating income and its assets are required.
5) ROI (Return on Investment) measures the profitability of an investment center, not efficiency.
Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner