Asked by Hanna Alexis on Sep 24, 2024
Verified
You are considering buying a store.In order to better access your return on the investment,your expectations of the return should be based on
A) Days where sales are high,costs are low
B) Days where sales are low and costs are high
C) Days where both sales and costs are low
D) A weighted average of all the above scenarios
Sales
Transactions between buyers and sellers in which the ownership of goods or services is transferred in exchange for money.
Costs
The amount of money that needs to be spent to buy, do, or make something.
Return on Investment
A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.
- Apply discernment in evaluating reported sales and profit numbers, being aware of potential biases.
Verified Answer
SA
Salmaa Al Obeidaat6 days ago
Final Answer :
D
Explanation :
A weighted average of all scenarios would provide a more realistic and accurate expectation of the return on investment. It takes into account both favorable and unfavorable days, and calculates the average return based on the frequency and magnitude of each scenario. This approach provides a more comprehensive understanding of the potential return on investment and helps in making informed decisions.
Learning Objectives
- Apply discernment in evaluating reported sales and profit numbers, being aware of potential biases.