An advantage of using return on investment (ROI) to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.

a. True
b. False

The return on investment refers to the measure that checks the performance of the company by considering the benefits or gain in terms of returns in the numerator side while on the other hand in denominator it is assets

It analyzed and evaluated the investment efficiency or compared the efficiency based on different investments

Hence, the given statement is true

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An advantage of using return on investment (ROI) to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income. a. True b. False

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An advantage of using return on investment (ROI) to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.

a. True
b. False