Asked by Emily Maniccia on May 14, 2024
Verified
Return on investment can be split into which of the following two measures?
A) Investment center income and profit margin.
B) Profit margin and net income.
C) Investment center average assets and investment turnover.
D) Residual income and operating income.
E) Profit margin and investment turnover.
Investment Turnover
Investment turnover measures how efficiently a company generates sales from its investment in fixed assets.
Profit Margin
The percentage of revenue remaining after all expenses, taxes, and costs have been deducted from total sales.
Return on Investment
A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the cost of the investment.
- Acquire knowledge of the essential performance measurements for investment centers, including profit margin, investment turnover, and return on investment.
Verified Answer
Learning Objectives
- Acquire knowledge of the essential performance measurements for investment centers, including profit margin, investment turnover, and return on investment.
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