Asked by Dionny Ancheta on Sep 29, 2024

A training program is expected to cost $1,000 and the "gross benefit" of the program is $2,000. Given that the return on investment in this scenario is positive, management should NOT invest in this program.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.

Gross Benefit

Gross benefit refers to the total positive outcomes or advantages gained from an activity or investment before subtracting any costs.

  • Learn about the interrelation of benefit-cost ratio and return on investment in the analysis of training programs.
  • Ascertain the usefulness of educational programs and comprehend their influence on strategic choices.