Asked by Yamirka Gonzalez on Sep 24, 2024
Verified
You are considering buying a store.In order to better access your return on the investment,you must ask the storeowner for the figures on days when
A) Sales are high,costs are low
B) Sales are low,costs are high
C) Both sales and costs are high
D) All of the above
Sales
The activity or business of selling products or services.
Costs
The costs associated with the creation of goods or services, covering materials, workforce, and indirect expenses.
Return on Investment
A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from the investment by its cost.
- Utilize caution when interpreting reported figures for sales and profits, taking into account possible biases.
Verified Answer
MM
Muqueet Mohsen Chowdhury5 days ago
Final Answer :
D
Explanation :
In order to accurately assess the return on investment, it's best to have data on both high sales/low costs and low sales/high costs. However, it's also important to have information on days when both sales and costs are high, as this can give insight into the store's overall profitability and potential for growth. So, all of the above choices are important for making an informed decision about purchasing the store.
Learning Objectives
- Utilize caution when interpreting reported figures for sales and profits, taking into account possible biases.