The following is a measure for assessing how effectively management used the funds invested and is the ratio of divisional sales to the investment in divisional assets.
A)profit margin percentage.
B)return on investment.
C)investment turnover ratio.
D)investment realization ratio.

Question

Quizplus · Accepted Answer

Investment turnover ratio is a measure that shows how effectively management used the funds invested, specifically the ratio of divisional sales to the investment in divisional assets. Profit margin percentage, on the other hand, measures the profitability of a company or division, while return on investment calculates the rate of return on an investment. Investment realization ratio is not a commonly used financial ratio.

The Following Is a Measure for Assessing How Effectively Management