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To ensure that a divisional vice president places appropriate focus on both the short-term and...

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Accounting

To ensure that a divisional vice president places appropriate focus on both the short-term and the long-term objectives of
the division, the best approach would be to evaluate the vice president's performance by using
A. Return on investment (ROI), which permits easy and quick comparisons to other similar divisions.
B. Financial and nonfinancial measures, including the evaluation of quality, customer satisfaction, and market
performance.
C. Division segment margin or profit margin.
D. Residual income since it will eliminate the rejection of capital investments that have a return less than ROI
but greater than the cost of capital.
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