Asked by Felicia Rioza on Jul 20, 2024
Verified
Suppose Deed Corporation evaluates managerial performance using return on investment.Edith Carolina, as president of the company, may view the opportunity for taking on the cosmetics line differently from Michael Sanders, manager of the Cosmetics Division.What action would each of them prefer with respect to the decision of whether to take on the new cosmetics line? 
Managerial Performance
Evaluation of the effectiveness with which managers achieve organizational goals and utilize resources efficiently and effectively.
Cosmetics Division
A specialized department or sector within a company focused on the production and sale of beauty, skincare, and personal care products.
- Recognize the impact of managerial decisions on divisional performance metrics.
Verified Answer
AC
Anirudh Christopher AnandJul 26, 2024
Final Answer :
A
Explanation :
From the perspective of the company, Carolina would want to accept the project because its return on investment exceeds the minimum required rate of return.From the perspective of the Cosmetics Division, Sanders would reject the project because it would reduce the Division's return on investment.
Learning Objectives
- Recognize the impact of managerial decisions on divisional performance metrics.