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.