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]]
bag
finance_public
created
Sat, 08 Oct 2011 10:00:50 GMT
creator
dirkjan
modified
Sat, 08 Oct 2011 10:00:50 GMT
modifier
dirkjan
tags
M18
ROI
Term
creator
dirkjan