In calculating ROI, the return on investment is based on the
A)book value of operating assets.
B)fair market value of operating assets.
C)historical cost of operating assets.
D)cost in terms of the value at year end.

Question

Quizplus · Accepted Answer

ROI, or Return on Investment, is typically calculated based on the book value of operating assets. This approach uses the value of assets as recorded in the company's financial statements, which is often based on their historical cost adjusted for depreciation and amortization, rather than their fair market value or any other valuation method.

In Calculating ROI, the Return on Investment Is Based on the