Select the appropriate definition for each of the items listed below.
-The most common measure of performance for an investment center.
A)Turnover
B)Margin
C)ROI
D)Residual income

Question

Quizplus · Accepted Answer

ROI (Return on Investment) is the most common measure of performance for an investment center. It measures the amount of return earned on an investment relative to its cost. Turnover measures how efficiently a company uses its assets to generate sales, margin measures the profitability of sales, and residual income measures the amount of income earned above a minimum required rate of return.

Select the Appropriate Definition for Each of the Items Listed