Kristin is examining a measure of the financial return the human resources department received for its investment in a new performance appraisal system.The new system cost $3,500 and saved more than $5,000 in payroll expenses.Kristin is examining the ________.
A)economic value added
B)return on investment
C)gain from investment
D)balanced scorecard
E)strategy

Question

Quizplus · Accepted Answer

The best choice is B, return on investment (ROI), which measures the financial return of an investment. In this case, the cost of the investment is $3,500 and the savings are more than $5,000, resulting in a positive ROI. Economic value added (A) is another measure of financial performance, but it focuses on the amount of value created above the required rate of return. Gain from investment (C) is a generic term and does not refer to a specific measure. Balanced scorecard (D) is a strategic management tool that includes multiple measures related to financial and non-financial performance. Strategy (E) is a broader concept that refers to the overall direction and plan for an organization.

Kristin Is Examining a Measure of the Financial Return the Human