Which of the following positive results does the use of return on investment (ROI)encourage managers to focus on?
A)the relationship between expenses and investment
B)exclusively expenses
C)operating efficiency
D)the efficient use of resources in generating income

Question

Quizplus · Accepted Answer

ROI encourages managers to focus on the efficient use of resources in generating income. It measures the return earned on a particular investment relative to its cost, which indicates how effectively the resources invested are being utilized to generate income. This focus on efficient resource utilization can lead to increased operating efficiency and better expense management as well.

Which of the Following Positive Results Does the Use of Return