The Rate of Return on a Business Project Equals

question 168

Multiple Choice

The rate of return on a business project equals:

• A) (Cost of project / revenue from project) * 100.
• B) (Revenue from project / cost of project) * 100.
• C) (Revenue from project * cost of project) * 100.
• D) (Revenue from project - cost of project) / (Cost of project) * 100.

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Definitions:

Landed Costs

The total price of a product once it has arrived at a buyer's doorstep, including the purchase price, transportation fees, customs, duties, and other taxes.

Sales/FOB Terms

Terms used in international trade to define when and where the responsibility and ownership of goods are transferred from the seller to the buyer; "FOB" stands for Free On Board.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, typically used as inputs in the production of other goods or services.

Distinctives

Unique characteristics or features that differentiate a product, service, or organization from its competitors.