The formula for calculating ROI is
A)Segment margin divided by internal rate of return.
B)Internal rate of return divided by average operating assets.
C)Operating income divided by average operating assets.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

ROI (return on investment) is calculated by dividing the operating income (or profit) by the average operating assets. This formula helps to measure how efficiently a company is using its resources to generate profits. Option A is incorrect because segment margin is not relevant to the calculation of ROI. Option B is incorrect because dividing internal rate of return by average operating assets does not give a meaningful measure of ROI. Option D is incorrect because there is no correct answer among the choices.

The Formula for Calculating ROI Is