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You are assigned to a team responsible for evaluating segment managers' performance measures. A ...

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You are assigned to a team responsible for evaluating segment managers' performance measures. A ...

You are assigned to a team responsible for evaluating segment managers' performance measures. A team member has indicated that a friend who is a manager at a competitor's company is evaluated using "ROI," but does not know what "ROI" is.

Required:

a.	Explain what ROI is and why it is a useful tool in measuring managers' performance.

b.	Give an example of when ROI would not be an appropriate performance

measurement.

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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