Accounting has its own vocabulary and basic relationships. Match the following accounting terms with the corresponding definition or meaning.
Definitions:
Fixed Expenses
Expenses that remain constant regardless of the amount of production or business operations, like lease payments or wages.
Return On Investment (ROI)
A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the return relative to the investment's cost.
Return On Investment (ROI)
A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments, calculated by dividing net profit by the cost of investment.
Operations Margin
The ratio of operating income to net sales, indicating the efficiency of a company's management by showing the proportion of revenue that turns into profit.
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