Asked by Vaughn Lawrence on Jul 27, 2024
Verified
Which of the following will not result in an increase in return on investment (ROI) , assuming other factors remain the same?
A) A reduction in expenses.
B) An increase in net operating income.
C) An increase in operating assets.
D) An increase in sales.
Operating Assets
Assets used in the day-to-day operations of a business to generate income.
Net Operating Income
A company's operating profit after subtracting operating expenses from gross profit, excluding taxes and interest payments.
Reduction In Expenses
Actions or strategies implemented by an organization aimed at decreasing its total costs or expenditures to improve profitability.
- Understand the application and consequences of return on investment (ROI) in assessing managerial performance.
Verified Answer
Learning Objectives
- Understand the application and consequences of return on investment (ROI) in assessing managerial performance.
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