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Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
Edition 5ISBN: 0073526940Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
Edition 5ISBN: 0073526940 Exercise 4
What is return on investment, and how is it calculated?
Step-by-step solution
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Step 1 of 2
Return on Investment:
Return on investment describes that it is the ratio that lies between net earnings and cost of investment. The high the return on investment the better it is and if the lower the return on investment the worse it is.
The return on investment shows the relationship between the return in terms of benefit and the cost of investment. It also measures the performance so that it can evaluate the investment efficiency or it compared the different type of investment efficiency. It can be expressed in a percentage form.
Step 2 of 2
Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
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