Which of the Following Is TRUE Concerning the ROI Performance

question 17

Multiple Choice

Which of the following is TRUE concerning the ROI performance measure?

• A)ROI is based on cash flow.
• B)Is also called the accounting rate of return.
• C)Some companies use net assets (assets minus liabilities)as the numerator.
• D)The usual formulation is [total assets/ income ].
• E)Net assets are sometimes used as the denominator, and net assets are sometimes used as the numerator.

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Definitions:

Cost Efficiency

The optimization of resources to achieve the maximum output or effect for the minimum cost or expenditure.

Customer Service

The support and advice provided by a company to those people who buy or use its products or services.

Process Driven Organizations

Companies that prioritize systematic procedures and workflows to achieve their objectives.

Process

A series of actions or steps taken in order to achieve a particular end.