The return on investment formula focuses on the amount of operating income earned before considering other revenue and expense items,such as interest expense.

Question

Quizplus · Accepted Answer

The return on investment formula, also known as ROI, calculates the return generated by an investment in relation to its cost or initial investment. It takes into account the operating income earned by the investment before any other revenue or expense items, such as interest expense, are considered. Therefore, the statement is true.

The Return on Investment Formula Focuses on the Amount of Operating