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 answer choices are correct.

Question

Quizplus · Accepted Answer

The return on investment (ROI) measures the rate of return generated by an investment in assets. It is calculated by dividing the net income generated by the investment by the cost of the investment. Therefore, option B is the correct answer. Options A and C are incorrect as they do not pertain to ROI. Option D is incorrect as there is a correct choice in the answer choices.

The Return on Investment Measures