Flamengo Co is a sporting goods manufacturing. What is the disadvantage for the company whenthe manager of the basketball division focuses only on its division ROI?O It can encourage the basketball division's manager to focus on the long run at the expense of the shortrun.O It can encourage basketball division's manager to cut inventories and reduce overall investment.O It can encourage the basketball division's manager to focus on cost-cutting efforts.OIt can accomplish all of these disadvantages.O It can produce a narrow focus on the basketball division profitability at the expense of Flamengo'sprofitability.

Every Company have two methods to measure the performances of a division of the company 1. ROI…

Answered: Flamengo Co is a sporting goods…

Flamengo Co is a sporting goods manufacturing. What is the disadvantage for the company when the manager of the basketball division focuses only on its division ROI?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2CMA

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