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1. What is the major benefit of the ROI technique for measuring performance?
2. What is economic value added (EVA) and in what ways can a company improve its EVA?
3. Why does GAAP require the absorption method?

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This solution discussed ROI, EVA and GAAP.

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1. What is the major benefit of the ROI technique for measuring performance?

The major benefit of the ROI technique for measuring performance is that of finding out how well the investments are doing in the marketplace for the company. This is because a person is able to make sure that the company is making more money than losing it when it comes to various stocks that are invested for the organization to prosper. When someone is able to take advantantage of this opportunity, he or she will quickly learn that they are getting interest for each of the areas that investments are made, which makes all their hard work worthwhile for those in ...

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