Difference between revisions of "ROI as a performance related reward"

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(Created page with "Using ROI as a performance related rewards is a dangerous, myopic measure: * They encourage division manager to retain assets beyond their optimal life and not to inve...")
 
 
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Latest revision as of 19:25, 27 August 2020

Using ROI as a performance related rewards is a dangerous, myopic measure:

  • They encourage division manager to retain assets beyond their optimal life and not to invest in new invest
  • They can cause corporate managers to over-allocate resources to divisions with older assets because the appear to be more profitable

Con's

All of the con's for Accounting Myopia