Return on Investment Is Computed by Dividing Income by

question 143

Multiple Choice

Return on investment is computed by dividing income by

• A)contribution margin.
• B)inventory turnover.
• C)assets invested.
• D)long-term assets.

---

Definitions:

Operating Department

A unit or division within an organization that is directly involved in performing the primary business activities of the company.

Budgeted Rates

Projected costs or expenses associated with specific activities or operations, used for budgeting and planning purposes.

Actual Rates

The current, real-time rates or prices for services, goods, or financial products in the market.

Transfer Price

The price at which goods or services are traded between divisions within the same company.