The return on investment measures
A)Actual costs against budgeted costs.
B)The rate of return generated by an investment in assets.
C)The dollar amount of segment margin over operating income.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

The return on investment (ROI) measures the rate of return generated by an investment in assets. It helps investors and businesses evaluate the efficiency of their investments and determine whether the investment produced a profit or a loss. Option A is incorrect as actual costs against budgeted costs do not provide a measure of return. Option C is incorrect as segment margin over operating income is not related to ROI. Option D is incorrect as one of the answer choices must be correct.

The Return on Investment Measures