The Denominator in the Formula for Return on Investment Calculation

question 124

Multiple Choice

The denominator in the formula for return on investment calculation is

• A) investment center controllable margin.
• B) dependent on the specific type of profit center.
• C) investment center average operating assets.
• D) sales for the period.

---

Definitions:

Competitive Firm

A business operating in a market where it has little to no influence on the prices of its products due to the presence of numerous competitors.

Total Profit Curve

A graphical representation that shows how a firm's profit varies with different levels of output.

Competitive Firm

A business that operates in a market where it must set prices competitively, influenced by supply and demand, without having significant market power.

Total Economic

An encompassing term that may refer to the complete economic activities or output of a specific region or sector.