Final answer:
It is generally false that a unit's cash balance should always be included in its ROI calculation, especially if the cash is controlled at the firmwide level and not actively used by the unit.
Step-by-step explanation:
False. A unit's cash balance should not always be included in its Return on Investment (ROI) calculation. Including the cash balance can be misleading if the cash is centrally controlled and not actively utilized by the unit to generate its income. ROI is a measure designed to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. By including cash that the unit cannot use to generate more revenue, the ROI may appear more favorable than it actually is. Therefore, it is better to exclude such cash balances to assess the true performance of the unit. However, it's important to adhere to the company's specific financial reporting and analysis policies - there might be exceptions to this rule based on internal standards or industry practices.