Which of the following is not considered in the calculation of divisional ROI?
A)Divisional income.
B)Earnings velocity.
C)Capital turnover.
D)Sales margin.
E)Sales revenuE.

Question

Quizplus · Accepted Answer

Earnings velocity is not considered in the calculation of divisional ROI. Divisional ROI is calculated by dividing divisional income by the division's investment base, where the investment base is the division's total assets minus current liabilities. Sales revenue, sales margin, and capital turnover are all factors considered in the calculation of divisional ROI.

Which of the Following Is Not Considered in the Calculation