When used in return on investment (ROI)calculations, turnover equals sales divided by average operating assets.

Turnover

The rate at which employees leave a company and are replaced by new employees or the rate at which inventory is sold and restocked.

Average Operating Assets

A measure of the investment needed to generate the operating income of a company, averaged over a period.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment relative to its cost.

Comprehend the factors that have an effect on Return on Investment and how changes in sales, expenses, and assets contribute to its variation.

Verified Answer

marcc tommyMay 22, 2024

Final Answer :

True

Explanation :

Turnover in ROI calculations refers to the ratio of sales to average operating assets.

Learning Objectives

Comprehend the factors that have an effect on Return on Investment and how changes in sales, expenses, and assets contribute to its variation.