_____ measures the overall effectiveness of management in generating profits with its available assets.
A) Return on investment
B) Economic order quantity
C) Target-on-sales
D) Retained earnings
E) Efficiency maximization

Question

Quizplus · Accepted Answer

Return on investment (ROI) is a financial ratio that measures the profitability of an investment based on the amount of return generated on the investment relative to the investment's cost. ROI is calculated by dividing net profit by total assets. This metric is used to determine how effectively management is utilizing the company's assets to generate profits.

_____ Measures the Overall Effectiveness of Management in Generating Profits