Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 11

What is return on equity, how is it calculated, and how is it interpreted?

Step 1 of 2

The primary goal of most of the business organization is to maximize profit. Now, managers have different approach and strategies to achieve this goal. It is necessary to have timely and periodic evaluation of the financial performance of the decisions taken by these managers. It helps is knowing the mistakes made and make changes that are needed.