Return on investment is calculated by dividing
A) contribution margin by sales.
B) controllable margin by sales.
C) contribution margin by average operating assets.
D) controllable margin by average operating assets.

Question

Quizplus · Accepted Answer

Return on investment (ROI) is calculated by dividing the controllable margin (or net operating income) by the average operating assets. This measures the efficiency with which a company uses its assets to generate earnings.

Return on Investment Is Calculated by Dividing