Explain the Difference Between "Return of Investment" and "Return on Investment".In

question 16

Essay

Explain the difference between "return of investment" and "return on investment".In judging the success of an investment,is the dollar amount of the return the only factor considered? If not,what additional information is necessary to properly evaluate an investment? What available measure of the performance of investments helps eliminate the distortion caused by the relative size of an initial investment?

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Definitions:

Activity Variances

Differences between the expected levels of activity used for costing purposes and the actual levels of activity observed, which can impact on cost calculations.

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period, including operational and non-operational costs.

Flexible Budget

A budget that adjusts to changes in the volume of activity, providing a more accurate basis for performance evaluation.

Customers Served

Refers to the number of individual customers or client accounts a business has successfully provided its products or services to within a specific period.