The best measure of managerial efficiency in the use of investments in assets is:
A)rate of return on stockholders' equity.
B)rate of return on investment.
C)income from operations.
D)inventory turnover.

Question

Quizplus · Accepted Answer

Rate of return on investment measures how efficiently a company is using its assets to generate profits. It takes into account both the amount of return and the amount of investment, providing a more comprehensive measure of efficiency than the other options listed.

The Best Measure of Managerial Efficiency in the Use of Investments