Return on sales is multiplied to investment turnover to calculate
A. residual income
B. return on investment
C. return on sales
D. investment turnover
Answer: Option B
Solution(By Examveda Team)
Return on sales is multiplied to investment turnover to calculate return on investment. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.This Question Belongs to Management >> Management Accounting
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