Explain the Performance Formula and How to Use It

question 21

Essay

Explain the performance formula and how to use it.

---

Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the cost of the investment.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Profit Centers

Segments or areas within an organization that are responsible for generating their own revenues and profits.

Square Footage

Square Footage is a measurement of area used primarily in the United States to indicate the size of a space, such as a room, house, or building, measured in feet.