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.

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Definitions:

Focused Charting

A documentation system used in nursing that centers on patient concerns and strengths, progress, and response to care.

Acronym

A shortened form of a phrase or series of words, where each letter in the acronym stands for one of the words in the phrase.

Respirations

The process of inhaling and exhaling air to facilitate gas exchange between the body and the environment.

Saturations

A term often used in medicine to refer to the level of oxygen saturation in the blood, indicating how much oxygen is being carried by red blood cells.