Q223
Return on sales is multiplied to investment turnover to calculate
A.
residual income
B.
return on investment
AnswerC.
return on sales
D.
investment turnover
Answer: Option B
Solution
Answer: Option B
Solution:
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.