What distinct advantage does a return on investment measure have over a residual income measure? Explain


The advantage of ROI measure over RI is that ROI facilitates a comparison of organizational sub-units of differing sizes. Because ROI is a performance measure that automatically scales for size, large and small sub-units can be compared to each other (subject to all the factors that should be considered when two units in different industries, different geographical areas, etc. are compared).

Business

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The direct materials standards for the main product of Duchess Company are 8 grams of direct materials per product at a cost of $3 per gram. During April, 974 grams of direct materials were used to produce 120 products at a direct materials cost of $2,900 . The direct materials quantity variance for April was

a. $72 (U). b. $92 (U). c. $42 (U). d. $112 (F).

Business

All of the following are reasons for the high failure rate of new products except

A. neglecting to do appropriate product testing. B. failing to assess the market properly. C. overextending a firm's abilities. D. targeting the wrong segment. E. failing to introduce lower-priced alternatives.

Business

A management science technique that does not assume that all parameters are known with certainty is a(n) ________ technique

Fill in the blank with correct word.

Business

Personal attributes that vary from one person to another are called

A. individual differences. B. organizational inducements. C. employee contributions. D. stressors. E. psychological contracts.

Business