How is return on investment (ROI)calculated?
A)operating income/average operating assets
B)average operating assets/operating income
C)operating income/sales
D)sales/average operating assets

Question

Quizplus · Accepted Answer

ROI is calculated by dividing the operating income by the average operating assets. This gives a percentage value that represents the return on investment for an organization. It is important for businesses to calculate ROI as it provides a measure of their profitability and helps them make informed decisions about where to allocate resources.

How Is Return on Investment (ROI)calculated