Why Is Return on Investment Better Than Income as a Measure

question 91

Multiple Choice

Why is return on investment better than income as a measure of performance for an investment center?

• A)The calculation for income is determined by GAAP, while return on investment is adjusted to meet the needs of the company.
• B)Return on investment is easier to calculate than income.
• C)Return on investment considers the amount invested as well as the income.
• D)Return on investment is forward looking, while income is backward looking.

Understand the basic symptoms and diagnostic criteria of major mood disorders including depression and bipolar disorder.

Recognize the impacts of mood on cognition and recall including how sadness and mania affect attention to details and memory.

Identify factors that contribute to the development and recurrence of mood disorders such as stress, genetic predispositions, and neurotransmitter imbalances.

Distinguish between various mood disorders based on their symptoms and demographic profiles.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with output levels.

Average Total Cost

The per-unit production cost, calculated by dividing the overall production expenses by the number of units produced.

Price Taker

An economic term for a market participant that accepts the prevailing prices without influencing them.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.