What Is the Purpose of Determining Return on Investment

question 64

Multiple Choice

What is the purpose of determining return on investment?

• A)To assess a company's controllable margin
• B)To determine which costs are controllable
• C)To assess performance of an investment centre
• D)To determine profitability of a profit centre

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Definitions:

Forecasting Tools

Instruments or software used to predict future trends or outcomes based on current data.

Human Capital Requirements

The necessary skills, knowledge, and abilities that employees must possess to fulfill the roles and responsibilities within an organization.

Sales Levels

The amount of revenue or units sold by a company in a specific period, which can indicate the performance and market demand for its products.

Human Capital Theory

A concept in economics that emphasizes the importance of human factors, such as skills and knowledge, in contributing to economic productivity.