The Return on Investment Formula Focuses on the Amount of Operating

question 36

True/False

The return on investment formula focuses on the amount of operating income earned before considering other revenue and expense items,such as interest expense.

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Definitions:

FOB Shipping Point

A term in shipping where the buyer assumes responsibility for the goods and shipping cost as soon as the goods leave the seller’s premises.

Freight Charges

Costs incurred for transporting goods from one place to another by sea, air, or land.

Trade Discount

A reduction in the listed price of goods or services offered by sellers to buyers in a commercial transaction.

Customer Discount

A reduction in the price of goods or services offered to customers, usually to encourage prompt payment or increase sales volume.