All of the Following Represent a Way of Calculating ROI

question 86

Multiple Choice

All of the following represent a way of calculating ROI (return on investment) except:

• A)(Operating income/sales)x (sales/investment).
• B)Operating income/divisional investment.
• C)Return on sales (ROS)x Inventory turnover.
• D)Operating income/divisional assets.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Diseconomies Of Scale

Situations where a firm's costs per unit increase as the scale of production increases, typically due to inefficiencies that arise from becoming too large.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Diminishing Returns

A principle in economics that states as one input variable is incrementally increased, there comes a point when the rate of resultant output begins to decrease.