Which of the following financial performance measures can be used to compare potential projects of different sizes?
A)ROI
B)Residual income
C)Sales revenue
D)Operating income

Question

Quizplus · Accepted Answer

ROI (return on investment) is a percentage that measures the profitability of an investment relative to its cost. It is a standardized financial performance measure that can be used to compare potential projects of different sizes. On the other hand, residual income, sales revenue, and operating income are not standardized measures and may not provide an accurate comparison of projects of different sizes.

Which of the Following Financial Performance Measures Can Be Used