When Defining Net Operating Income for Return on Investment (ROI)

question 28

Multiple Choice

When defining net operating income for return on investment (ROI) purposes, which of the following items should not be included?

• A) Sales revenue
• B) Cost of goods sold
• C) Interest expense
• D) Salaries expense

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Definitions:

Value Chain

The full range of activities that businesses go through to bring a product or service from conception to delivery to the consumer.

Customer Satisfaction

A measure of how products or services offered by a company meet or surpass customer expectations, essential for retaining clientele and fostering loyalty.

Performance Target

A predefined goal or objective used to measure the efficiency, effectiveness, and success of an organization or individual's activities.

Learning and Growth

Learning and Growth refer to strategies or initiatives within an organization aimed at boosting the capabilities and satisfaction of its employees through training and development, impacting the long-term success of the organization.