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what is criticisms of ROI and why the residual income may be a better indicator than...

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Accounting

what is criticisms of ROI and why the residual income may be abetter indicator than the ROI?

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Although ROI is widely used in evaluating performance it is not a perfect tool it is subject to following criticisims Just telling managers ti increase ROI is not enough managers may not now how to increase ROI they may increase ROI in a way that is inconsistent with the companys strategy or they may take steps    See Answer
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what is criticisms of ROI and why the residual income may be abetter indicator than the ROI?

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