Return on Investment (ROI) Is a Very Popular Measure Employed $\begin{array} { l c c c } && \text { Sales } & &\text { Equipment } & \text { Investment } \\\end{array}$

question 88

Multiple Choice

Return on investment (ROI) is a very popular measure employed to evaluate the performance of corporate segments because it incorporates all of the major ingredients of profitability (revenue, cost, investment) into a single measure. Under which one of the following combinations of actions regarding a segment's revenues, costs, and investment would a segment's ROI always increase? (CIA adapted)
$\begin{array} { l c c c } && \text { Sales } & &\text { Equipment } & \text { Investment } \\\end{array}$
A) $\begin{array} { l c c c } & \text { Increase } & \text { Decrease } && \text { Increase } \\\end{array}$
B) $\begin{array} { l c c c } & \text { Decrease } & \text { Decrease } && \text { Decrease } \\\end{array}$
C) $\begin{array} { l c c c } & \text { Increase } & \text { Increase } &&& \text { Increase } \\\end{array}$
D) $\begin{array} { l c c c } & \text { Increase } & \text { Decrease } && \text { Decrease } \\\end{array}$

---

Definitions:

Electronic Device

A piece of equipment that operates on electricity, including anything from computers and smartphones to household appliances.

Produce Information

The process of generating or creating data, facts, or details that are useful or necessary for a specific purpose or audience.

Accept Data

The process by which data is received and processed by a system or application for further use.

Installing Software

The process of adding new software or programs to a computer system so that they become operational.