When defining operating income for return on investment (ROI)purposes,many organizations do not include which of the following?
A)Cost of goods sold.
B)Allocated overhead.
C)Operating expenses.
D)Sales revenue.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Allocated overhead is often excluded from operating income calculations for ROI purposes because it may not directly relate to the operational performance being measured.

When Defining Operating Income for Return on Investment (ROI)purposes,many Organizations